Bitcoin has stirred up a large amount of emotion in the market as a massive selloff has caused many to rethink their positions in crypto. The past year has been quite intense for the currency and the entirety of the crypto world as rapid ups and downs have brought a large amount of investors into the space. Yves Mersch, a member of the European Central Bank’s executive board stated that there should be a global clamp down on the crypto world because it is a threat to worldwide financial stability.
He stated that “at these speeds, if you bought a bunch of tulips with bitcoin they may well have wilted by the time the transaction was confirmed.” It is clear his sentiment is quite bad about cryptocurrency, but others seem to have better things to say about the industry. Agustin Carstens reiterated a similar opinion to Mersch, as the head of the Bank for International Settlements. He stated recently that bitcoin is “a bubble, a Ponzi scheme and an environmental disaster. If authorities do not act preemptively, cryptocurrencies could become more interconnected with the main financial system and become a threat to financial stability.”
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The market on cryptocurrency is still undoubtedly in its infant stages, which is leading many to come and go out of the market. As the market on crypto is able to mature, the hopes are that a combination of investors changing their interests, and a solid amount of well thought out regulation, will help to ensure that the current state of the market does not remain. As cryptocurrency often gets a bad rap, hopefully the future will be able to have a say in what happens to a market with such a wide array of possibilities to change the world financial system.