Surging interest in Bitcoin is not translating into commensurate investment, as most potential investors are bogged down with apprehensions over virtual currencies, owing to the lack of regulation.
The Reserve Bank of India (RBI) last cautioned investors about the risks involved when dealing with virtual currencies. It said the value of such currencies seems speculative as they are not backed by assets. Their location of storage, called e-wallets, can be hacked and access to the wallets can be lost or stolen.
The legal status of use of bitcoins as currencies and for trading is unclear, RBI had warned. The Central bank, however, stopped short of regulating it or banning it. Potential investors say they would be comfortable investing in Bitcoin if RBI issued guidelines.
“I have been studying Bitcoin for a while but haven’t invested. It sounds promising as a few people I know have been trading. With RBI guidelines, investors’ confidence can be boosted,” said D. Suresh, who was part of a seminar organised by BTCX India in Prodattur to educate potential investors about Bitcoin.
Those in the Bitcoin trade admit the volatility in value but insist that safe practices are possible. “Bitcoin Exchanges like ours are operating within the legal framework as we do not allow direct cash payment for buying or selling. Transactions are allowed only through bank transfers,” said BTCX India MD Sivakameshwar Rao.
BTCX India is a Hyderabad-based Bitcoin exchange that allows trade of bitcoins. It has been around for five months and serves 1,000 clients.
Click on the bitcoin logo below to buy, use or accept bitcoin. Unocoin is India’s most popular bitcoin wallet.
To read the bitcoin white paper, visit: https://bitcoin.org/bitcoin.pdf
