Buying Bitcoin Is Risky: ECB Vice President
“There is a risk of investing in bitcoin at current valuations”. This point gave the vice president of the European Central Bank yesterday.
Vitor Constancio told CNBC, that developments in bitcoin’s price make it a speculative asset. “Investors are taking that risk of buying at such high prices,” said Vitor.
Recently the leader of cryptocurrencies, has seen remarkable rises in value. Prices have shot past $8,000 to successive new highs In the last week alone. And on yesterday bitcoin smashed over $11,000.
While the value has since dropped closer to $10,000, the meteoric rally has prompted many in the finance space to say bitcoin is in a bubble.
After getting closer of the mark $10,000, many specialists say that bitcoin is in a bubble.
The vice president informed CNBC, that ECB has no intention to regulate the cryptocurrency, and they don’t have responsibility that point to particular prices of specific assets, and that is out of competence of central banks. In September, ECB president Mario Draghi informed that the central bank does not have the authority to regulate cryptocurrencies. He said that it is actually out of their competence to regulate bitcoin.