Villagers pledge assets, bet big on Bitcoins

TIRUCHY: Several economists around the world are of the opinion Bitcoin is a bubble waiting to burst and, a few countries, including China, have already restricted trade in the virtual currency.  However, residents of a village near Tiruchy have taken the risk of pledging their assets to invest in the cryptocurrency as they see it as a boon.

Hoping to make fast buck, residents of Allithurai, a village in the outskirts of the city, are pledging jewellery and even homes to invest in Bitcoins through agents. Success stories of early investors are luring more people in. When a few agents visited the village and talked to people about Bitcoins almost a year ago, the computer-illiterate residents hesitated to invest in virtual currency.  

However, a few people like Mahalakshmi, a primary school teacher, decided to take the plunge and pledged her ornaments and gave the money to a Bitcoin agent. She claims she has made a tidy profit from the investment. Her success encouraged relatives and friends in the village to invest. “I invested in Bitcoins through an agent. After finding how much I made, my sister Vijayalakshmi also pledged her assets to invest through  the same agent,” Mahalakshmi said.

Muniyandi, a milkman, who earns `15,000 a month, pledged his property to invest in the virtual currency. “I am aware of the risks but have to take the plunge for the future of my children. Many people are already making profits, so I am also trying my luck,” Muniyandi said.

Interestingly, residents are not investing in Bitcoins and managing them by themselves. Agents collect small amounts and then invest in cryptocurrency. The agents do everything for villagers, whose only job is to check their bank accounts every month to know how much profit they got.

The strategy followed by agents is encouraging more villagers to invest their money in Bitcoins. According to investors, profits are credited to accounts on the 16th and 24th of every month. Many of these agents involved in the Bitcoin trade reportedly have offices in Tiruchy.

However, it is difficult to meet Bitcoin agents without references from clients. Express approached them through one of their clients stating he was interested in investing.

Asked about the risk involved in the trade, an agent said, “This is risky and we inform our clients about it. There is nothing illegal and trading in Bitcoins is not banned in our country.”

Experts, however, smell a rat. “Bitcoins are not legal tender. The government must keep an eye on this and intervene to educate people. This is the need of the hour,” said S N Misra economist and former Director (Finance), Defence Research and Development Organisation.