Karnataka: The Cryptocurrency Bitcoin is gaining ground as an investment option in Bengaluru.
But, the worrying fact is that many are unaware about the risks involved in virtual currency. In Bengaluru, about 2500 new users are added every day. People from the districts in Karnataka state are invited to attend seminars regarding investing in bitcoins. They are lured to invest in the virtual currency by telling them fake stories of buyers becoming rich in a short time.
People are acting as agents promoting bitcoins by forming pyramid marketing techniques. For instance, a house wife from Tumakuru, N Yashoda bought half a bitcoin for Rs 1.45 lakh earlier this year. She got two other people into the network, and the commissions made her the owner of a full bitcoin. She promotes bitcoins among investors in her circle.
If bitcoins are converted into Indian currency they are taxed heavily by about 33% including surcharges also.
The RBI has not yet taken any step to ban bitcoins. The income tax authorities are also concerned that bitcoins are being used for money laundering. They are now tracing the details of investors in bitcoins.
Pavan Duggal, Supreme Court advocate and cyber law expert says that investing in bitcoins is associated with risk. He further said that “They are highly speculative. It is a disaster that people are buying bitcoins through pyramid networking.”
The former Chief financial officer of Infosys said that
“The bitcoin is not illegal in India. RBI only warns people about the speculation in the
currency.”