Bitcoin has taken the entire world by a storm in the last two weeks or such due to a sudden surge in its price. The popular cryptocurrency, due to its volatile nature, has even struck fear among others and confused the heck out of the rest of us. At the time of writing the report, Bitcoin was trading at $16,763. Bitcoin even made a stunning debut on the futures exchange last Sunday. The cryptocurrency surged as much as 25 percent during the debut session on Cboe Global Markets Inc.’s exchange. The trade was so active that it triggered two temporary trading halts meant to cool volatility. The euphoric rise in cryptocurrency has attracted numerous investors worldwide. However, here’s one investment expert who thinks it’s time for India to develop its own cryptocurrency. “There is a tremendous amount of interest in the Bitcoin and I have to regret saying that, I am eminently disqualified on commenting on Bitcoins. But, I have one more suggestion, instead of entering into Bitcoin at $200 billion market cap, why not we create ‘Indicoin’,” said Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company to CNBC-TV 18 on Monday. India is home to more than 40 crore internet users, and can easily create a virtual currency with the high-quality computational skills it possesses, he added.

Nevertheless, Reserve Bank of India doesn’t appear much enthused by the idea. Cautioning users, holders and traders of VCs third time since February 2013, India’s central banking institution on Tuesday last week came out with another warning letter making them aware about the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with such VCs. “In the wake of the significant spurt in the valuation of many VCs and rapid growth in Initial Coin Offerings (ICOs), RBI reiterates the concerns conveyed in the earlier releases,” said the central bank. RBI clarified that it has not given any licence or authorisation to any entity or company to operate such schemes or deal with Bitcoin or any VC. Bitcoin, the most popular cryptocurrency, reached an all-new high on Wednesday and topped the $12,000 mark for the first time ever. The Reserve Bank of India had first cautioned the investors about the risks associated with trading in VCs way back on 24 December, 2013. Thereafter, it was on 1 February 2017 another press release was issued by the central bank in this regard.

No fundamental value

Legendary investor Warren Buffett had said in an interview to CNBC in 2014 that virtual currencies especially bitcoin is a “mirage”, adding that investors should “stay away from it”. In the same interview, Warren Buffett said, “It’s a method of transmitting money. It’s a very effective way of transmitting money and you can do it anonymously and all that. A cheque is a way of transmitting money, too. Are cheques worth a whole lot of money just because they can transmit money?… The idea that it has some huge intrinsic value is just a joke in my view.” Reiterating his belief on Bitcoins and cryptocurrencies, Warren Buffett told Marketwatch in October this year: “You can’t value bitcoin because it’s not a value-producing asset,” adding that it is a “real bubble in that sort of thing”.

Fraud

The rapidly surging price of virtual currency such as Bitcoin, without any underlying asset or value-based, has irked the top banker Jamie Dimon. “Bitcoin is a fraud and will blow up,” Jamie Dimon, the CEO of JPMorgan Chase, said earlier this year, adding, “The currency isn’t going to work.” He pointed out to the absence of an underlying monetary base to support its value. “You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart,” Jamie Dimon said.

Bubble

Renowned investor Jim Rogers, sometimes referred to as commodities guru, too has sounded a note of caution on the prospects of cryptocurrencies, preferring to stay away from them for now. “I wish I was smart enough to buy cryptocurrencies.” Jim Rogers said in a recent interview with Kitco news. Further, Jim Rogers seemed to suggest that there might be a bubble building up in the cryptocurrency space. “It looks bubblish when you see the kind of price we see in bitcoins,” Jim Rogers said, adding that he doesn’t own any of the cryptocurrencies. “I certainly don’t know which one will come out on top, or if anyone comes out on top. But, I don’t own any.”