Bitcoin and cryptocurrencies experienced strong sales this week, despite a bold plan to boost the price of bitcoin.
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The price of bitcoin has lost about 10% over the past week – with ethereum, cardano, Binance’s BNB, Ripple’s XRP and the recording of meme-based dogecoins falling even harder – even when the country of ‘El Salvador previously adopted Bitcoin as a legal tender and banking giant Standard Chartered predicted that the price of Bitcoin and Ethereum could be about to explode.
Now, two high-profile central bankers have warned that Bitcoin and other cryptocurrencies are at risk of collapsing and are not “a good safeguard of value.”
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The price of bitcoin rose until August, but strong sales ended with more than $ 300 billion … [+]
2018 Chesnot
“Private money usually collapses sooner or later,” Riksbank Governor Stefan Ingves said at a bank conference in Stockholm. Bloomberg. “And of course, you can get rich by trading with bitcoin, but it’s comparable to stamp trading.”
Meanwhile, the governor of the Bank of Mexico, Alejandro Díaz de Leon, said that bitcoin is more like a medium of exchange than “evolved” fiduciary money, which he describes as a high-risk, low-risk investment. value due to the variation of their prices.
The price of bitcoin has risen a massive 350% over the past twelve months, but investors have needed strong stomachs; on Tuesday alone bitcoin fell nearly 20% before recovering. Combined, the entire cryptocurrency market has grown by about 170% since January, with a large share of these coming from rises in ethereum, cardano, solana, BNB, XRP and dogecoin.
“Anyone who receives bitcoins in exchange for a good or service, we think it’s more like barter because that person exchanges a good for a good, but not really money for a good.” Reuters He quoted Díaz de León as saying, with his comments on the cold water supply, on suggestions that Mexico might follow El Salvador by adopting bitcoin as its official currency.
“People won’t want their purchasing power, their salary going up or down 10% overnight. You don’t want that volatility for purchasing power. In that sense, it’s not a good safeguard of value.”
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The price of bitcoin has risen over the past year, but its growth has stagnated in recent months … [+]
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The double central banker alert comes after analysts at banking giant JPMorgan
JPM
“The previous phase of retail investors’ craze for cryptocurrency markets was between early January and mid-May … and retail investors are making cryptocurrency markets look frothy again,” researchers wrote. of JPMorgan led by CEO Nikolaos Panigirtzoglou.