“Cryptocurrency akin to ponzi scheme” says Reserve Bank of India deputy Director, while inflation edges past 6% in January, at 7 month high.

“We have also seen that cryptocurrencies are not amenable to definition as a currency, asset or commodity; they have no underlying cash flows, they have no intrinsic value; that they are akin to Ponzi schemes, and may be even be worse,” T. Rabi Sankar said in a speech.

The Deputy director doesn’t know the how the valuations work, I don’t know.

Last week, RBI Governor Shaktikanta Das also delivered a stark warning against investing in cryptocurrencies, saying they lacked the underlying value of even a tulip – in a reference to a speculative bubble that gripped the Netherlands in the 17th century.

As for the inflation India’s retail inflation accelerated past the 6% mark in January to hit 6.01%, breaching the central bank’s tolerance threshold for consumer price inflation for the first time since June 2021. Retail inflation was 5.66% in December 2021.

Reserve Bank of India Governor Shaktikanta Das said the 6% inflation print should not cause concern or trigger any alarm, because the central bank has already taken its prospect into consideration. The Consumer Food Price Index spiked significantly from 4.05% in December to 5.43% in January, with rural India again reporting a sharper rise.

Draw your conclusions, the data speaks for itself.

View Source

18 thoughts on ““Cryptocurrency akin to ponzi scheme” says Reserve Bank of India deputy Director, while inflation edges past 6% in January, at 7 month high.”

  1. Ethereum has cash flows. [Ethereum is on track to have revenues in May 2021 of $956 million](https://www.theblockcrypto.com/data/on-chain-metrics/ethereum) and has annualized revenues of $11.5 billion and growing.

    Every Ethereum transaction creates revenues that will flow directly to users who are staking rewards or indirectly (via token burns which reduce supply and operate like stock buybacks).

    The same can be said for any other network with gas fees, including Bitcoin.

    Reply
  2. You know someone’s a complete moron when they compare crypto to a ponzi scheme.

    Do they even know and understand what a ponzi scheme is?

    Reply
  3. Well I’m an NRI who’s money got locked up for no reason

    India akin to fascist dictatorship, banking system might as well be terrorism

    Reply
  4. * **[CBDC](https://old.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_cbdc) [Pros](https://old.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_cbdc_pros) & [Cons](https://old.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_cbdc_cons)** – Participate in the [r/CC Cointest](https://reddit.com/r/CointestOfficial/wiki/cointest_policy) to potentially win moons. Prize allocations: 1st – 300, 2nd – 150, 3rd – 75.

    * Relevant Cointest topics: [Ripple](https://old.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_ripple), [Stellar](https://old.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_stellar), [Tether](https://old.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_tether), [Regulation](https://old.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_regulation).

    * Official and related subreddits: r/FederalReserve, r/Ripple, r/Stellar.

    * Sort comments as controversial first by [clicking here](https://www.reddit.com/r/CryptoCurrency/comments/ssxao6/cryptocurrency_akin_to_ponzi_scheme_says_reserve/?sort=controversial). Doesn’t work on mobile.

    *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*

    Reply
  5. * **[Inflation](https://en.wikipedia.org/wiki/Inflation) [Pros](https://reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_inflation_pros) & [Cons](https://reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_inflation_cons)** – Participate in the [r/CC Cointest](https://reddit.com/r/CointestOfficial/wiki/cointest_policy) to potentially win moons. Prize allocations: 1st – 300, 2nd – 150, 3rd – 75.

    * Relevant Cointest topics: [CDBC](https://old.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_cbdc), [Regulation](https://old.reddit.com/r/CointestOfficial/wiki/cointest_archive#wiki_regulation).

    * Related subreddits: r/Inflation, r/Economics, r/Economy, r/AskEconomics, r/EconomicHistory, r/Austrian_Economics.

    * Sort comments as controversial first by [clicking here](https://www.reddit.com/r/CryptoCurrency/comments/ssxao6/cryptocurrency_akin_to_ponzi_scheme_says_reserve/?sort=controversial). Doesn’t work on mobile.

    *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*

    Reply
  6. It’s a good thing India is concerned about crypto. I guess they don’t have that many problems in the country so they can focus in this /s

    Reply

Leave a Comment