Bitcoin, the world’s leading cryptocurrency, is no stranger to controversy. Recently, Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar harshly criticized Bitcoin, claiming it has no real value and is purely driven by speculation. Speaking at the Mint Annual BFSI Conclave 2025, Sankar compared Bitcoin’s price volatility to the infamous tulip mania of the 17th century, signaling concerns about a potential bubble.
Bitcoin’s Lack of Intrinsic Value, Says RBI Deputy Governor
During his keynote, Sankar elaborated that while blockchain technology might be groundbreaking, Bitcoin itself was created merely as a demonstration tool—not as a financial asset or currency. According to him, Bitcoin’s lack of issuer backing, cash flow, or intrinsic worth makes it unsuitable as money or a financial instrument. “Bitcoin’s price is driven by speculation, fueled by what people are willing to pay for it, not because it holds any genuine value,” he stated.
India’s Crypto Adoption Continues Despite Criticism
Despite the central bank’s consistent warnings, crypto adoption in India has skyrocketed. Boasting over 100 million users, India has cemented its position as one of the largest cryptocurrency markets globally. The country’s growth comes despite strict regulatory measures, including a 30% capital gains tax on crypto profits and a 1% tax deducted at source (TDS) on each crypto transaction—policies implemented to curb speculative trading and improve government oversight.
The Volatility Challenges in Crypto Investment
The Deputy Governor also highlighted the volatile nature of cryptocurrencies. Bitcoin, for instance, currently trades nearly 30% below its all-time high, with many altcoins seeing declines between 40% to 70%. This unpredictability reinforces concerns about cryptocurrencies as speculative instruments, rather than stable investments.
Why Blockchain is Still Valuable
While critical of Bitcoin, Sankar acknowledged the underlying blockchain technology as a revolutionary innovation. Blockchain’s ability to facilitate secure, intermediary-free transactions has sparked use cases in finance and beyond. However, he emphasized that the technology’s value doesn’t equate to Bitcoin’s worth as an asset.
Should You Invest in Bitcoin Amid These Concerns?
It’s crucial for aspiring crypto investors to separate FOMO (fear of missing out) from educated decision-making. If you’re starting your cryptocurrency journey, consider using trusted platforms like Coinbase to manage and trade digital assets securely. Conduct thorough research and consult financial advisors before entering this highly volatile space.
Stay informed and rely on trusted sources like CoinPedia for timely cryptocurrency updates. For long-term crypto investors, tax regulations and market trends should remain significant factors in shaping investment strategies.
