Ulrich Bindzail believes bitcoin is a speculative bubble into which money is poured, but it will inevitably burst.
The CEO of the European Central Bank believes that bitcoin has lost its relevance. Ecb.europa.eu questioned whether this cryptocurrency could be an alternative to national currencies and its value.
After the collapse of the FTX cryptocurrency exchange, the value of BTC was $ 16,000, and a year ago the value of the cryptocurrency was $ 64,000. Despite the fact that the coin is fixed at $ 17,000, ECB CEO Ulrich Bindzail is experiencing the last legs of BTC.
In his blog, he wrote that the problem is the high cost of operations, which, moreover, require a lot of time. This is why very few companies accept Bitcoin as a means of payment. However, working with fiat currencies is much easier and faster. Bindzail also noted that he thinks the cellar rate is speculative. According to him, this is why a constant pumping of funds is needed for Bitcoin to survive. And even in the crypto winter, investors continue to pour money into the crypto and blockchain industry.
The financier writes that bitcoin cannot be considered an investment, as cryptocurrency cannot generate financial flows, does not provide an opportunity to receive dividends, and cannot be used as a commodity. The author claims that large investors, the so-called “whales”, are doing everything possible to keep BTC attractive, but the collapse of the vault is not far off. Despite the EU’s attempts to regulate the cryptocurrency market.
The CEO of the European Central Bank believes that the risk of loss for financial institutions investing in bitcoin is extremely high, even if they may benefit in the short term. He advises organizations that value their reputations not to deal with cryptocurrencies.
Source: Focus
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