Central banks are warning investors regarding Bitcoin investments
- The European Central Bank is cautioning Bitcoin investors
- According to the bank, the users should prepare themselves for facing loses
- The price movement of cryptocurrencies have become a concern of several bankers and economists
- Every investor should make the right decision while investing in such volatile assets
Bitcoin, the most famous crypto-token, has shown its potential by soaring at a tremendous pace. Following the surge and performance of the volatile token, Central banks are now warning the token investors. The members of the European Central Bank have warned the investors of Bitcoin on Saturday. According to the bank, the users investing their funds in Bitcoin due to the fear of missing out (FOMO) can lose their money. However, before the warning, several economists are also observed, warning the investors that vulnerabilities in the token can collapse completely.
Bitcoin investors should prepare themselves for loses
According to Gabriel Makhlouf, the governing council member of the European Central Bank, bitcoin investors should prepare themselves to lose their funds. This is the latest warning from the central banker on crypto tokens. Makhlouf, also a governor of Ireland’s central bank, explained that it is speculative why investors invest in such volatile assets and see such tokens as clear assets. However, the role of Makhlouf is to make sure that consumers stay protected.
Cryptocurrency prices have become a concern
Following the comment of Makhlouf, other leaders of the European Central Bank also found sceptics regarding cryptocurrency. The central bank’s president, Christine Lagarde, also commented that the digital currencies are highly speculative assets. Earlier this week, Agustin Carstens, the manager of the bank of International Settlements (BIS), also warned the investors regarding the dangers of investing in cryptos. On Wednesday, during a policy seminar of Hoover Institutions, an economist considered Bitcoin as a speculative asset without monetary value.
The concern is to make the right choices while investing in BTC
Following this week’s price performance of Bitcoin, the concerns seem optimistic. Large movements have become familiar with four daily swings of more than 5%. On Friday the price of Bitcoin jumped over $35k in a few hours. While finding the reason behind the surge, it is found that the CEO of Tesla, Elon Musk, puts #Bitcoin into its Twitter profile. Following the incident, Makhlouf commented that he doesn’t see anything called financial stability issues at the moment. The primary concern is the consumers’ choices, as the users are needed to take every step making the right choice.
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