A Kolkata resident is suspected of having committed suicide after experiencing heavy losses when investing in stocks and cryptocurrencies. The 49-year-old’s body was found floating in the Hooghly River north of Kolkata last month, and an autopsy showed no evidence of violence. A family member said the man seemed to have no serious financial or emotional problems, but a further investigation found he may have had investments in bitcoin and shares that experienced negative downturns before his death. This followed another recently reported incident in India where a 23-year-old man attempted suicide due to financial losses from crypto investments. These and other cases in India have illustrated the need for caution when investing in volatile assets like bitcoin, particularly after recent drops in global cryptocurrency markets.
Kolkata, a vibrant city in the eastern state of West Bengal, has attracted increasing attention both from locals and foreigners due to its booming economy and digitalisation efforts. With a population of nearly 15 million and a thriving metropolis, Kolkata has become a hub of commerce and industry, with the city’s IT sector contributing a large part of its economy. The rise of information technology and related fields has also spawned more niche sectors to emerge, such as cryptocurrency trading.
Cryptocurrencies like bitcoin have experienced a dramatic surge in popularity in recent years, propelled by the increasing public interest and acceptance of digital currencies as a legitimate form of payment. Indians are no exception to the trend, with trading volumes surging across the nation. Indeed, the QuadrigaCX scandal – the largest Canadian cryptocurrency exchange, which shut down operations in 2019 following the mysterious death of its co-founder, has garnered extensive coverage and attention in India.
However, the relatively unregulated nature of cryptocurrency markets has given rise to significant risks for investors. Captivating potential traders with the prospect of sky-high returns, cryptocurrencies are exposed to price manipulation, insider trading, and fraud, among other risks. As a result, many unprepared investors have lost significant amounts of money. The tragic case of the Kolkata resident serves as a cautionary tale, highlighting the dangers associated with crypto investment.
There has been a gradual shift in the perception of cryptocurrencies globally, moving from a fringe technology to a complex, multifaceted investment that demands caution and due diligence. This has intensified calls for regulation and the implementation of protocols to minimize associated risks involved. In India, the Reserve Bank of India (RBI) has expressed concern over the lack of regulation and legality surrounding cryptocurrencies, even going so far as to issuing a directive that prohibited financial institutions from dealing with digital currencies.
Despite widespread calls for regulation, the Indian government is yet to take concrete action to combat the chaotic state of the cryptocurrency space in the country. This has led many to falling prey to scams or miscalculating their investments, motivated by a combination of naivety and greed – resulting in massive losses and, in some cases, death.
Cryptocurrency investments are ill-advised for those not prepared for high levels of risk or those unwilling to take a substantial hit in the case of market downturns. In the face of unpredictable market conditions, managing risk is critical – a lesson underscored by the tragic events in Kolkata.