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Both bitcoin and cryptocurrencies have seen a steep decline this week, despite a bold plan to bolster the price of bitcoin.
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The price of bitcoin has lost around 10% over the past week – with ethereum, cardano, Binance’s BNB, Ripple’s XRP, and mem-based dogecoin registering even steeper drops – even as the country of El Salvador has once adopted bitcoin as legal tender and banking giant Standard Chartered has predicted that the price of bitcoin and ethereum may be on the verge of exploding.
Now, two prominent central bankers have warned that bitcoin and other cryptocurrencies are in danger of collapsing and are not “a good safeguard of value.”
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The price of bitcoin rose until August, but massive sales wiped out more than $ 300 billion from the … [+]
2018 Chenot
“Private money usually collapses sooner or later,” Riksbank Governor Stefan Ingves told a banking conference in Stockholm, it was first reported by Bloomberg. “And of course you can get rich by trading bitcoin, but it’s like trading in stamps.”
Meanwhile, Bank of Mexico Governor Alejandro Diaz de Leon has said bitcoin looks more like a means of barter than “advanced” fiat money, calling it a high-risk investment and low store of value due to its sharp price fluctuations.
The price of bitcoin has risen 350% over the past 12 months, but investors needed a strong stomach – bitcoin alone on Tuesday fell almost 20% before rebounding. Together, the overall cryptocurrency market has jumped around 170% since January, much of that coming from the increases seen in Ethereum, Cardano, Solana, BNB, XRP and Dogecoin.
“Anyone who receives bitcoin in exchange for a good or a service, we think it is more akin to bartering, because that person is exchanging a good for a good, but not really money for a good. ” Reuters quoted Diaz de Leon, with his comments pouring cold water on suggestions that Mexico could follow El Salvador by adopting bitcoin as the official currency.
“People won’t want their purchasing power, their wages to increase or decrease by 10% overnight. You don’t want this volatility in purchasing power. In that sense, it doesn’t. is not a good backup of the value. “
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The price of bitcoin has skyrocketed in the past year, but its growth has stalled in recent months … [+]
Coinbase
Double central banker alert comes after analysts at banking giant JPMorgan
JPM
“The previous phase of the retail investor mania in the cryptocurrency markets took place between early January and mid-May … and retail investors are once again making the cryptocurrency markets look sparkling,” wrote researchers from JPMorgan headed by Managing Director Nikolaos Panigirtzoglou.
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