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Thursday, 30 November 2017

Investors Taking Risks Buying Bitcoin

The Vice President of the European Central Bank (ECB) has stated that thise investing in Bitcoin are taking a risk.

Vitor Constancio while speaking to CNBC, said developments in Bitcoin's price make it a "speculative asset by definition." saying,
"Investors are taking
that risk of buying at
such high prices."

Bitcoin which has the largest share in the cryptocurrency market capitalization.
Last week, the cryptocurrency shot up to its peak from $8000 to $11,000 yesterday,then later came down to $10,000. This led to many in the financial space concluding that the currency is in a bubble, ready to go off at any point in time.

Even at that, Vitor said that the ECB was in no position to regulate the cryptocurrency.
 "We
don't have responsibility or
even instruments that point to
particular prices of particular
assets, that is certainly not
the role of central banks."
 This is similar to a view expressed by ECB president Mario Draghi.
"It would actually not be in our
powers to prohibit and
regulate" bitcoin and other
digital currencies, he said at
the time.

What do you think about this view? Is our beloved Bitcoin in a bubble? Share your views and opinions and share your email address to subscribe to our newsletter

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