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European Central Bank’s president warns people that they can lose a lot of money in Bitcoin

Bitcoin fans weren’t fazed and soon after, prices went up.

bitcoin cryptocurrency on table
Image: Unsplash

European Central Bank President Christine Lagarde recently said that Bitcoin is not a currency anymore, but a “highly speculative asset.” In her comments about Bitcoin, she even raised concerns that some might have used the digital currency for money laundering.

It is no secret that Bitcoin is the most popular and most traded cryptocurrency globally, and bankers have never liked that. They always warned about its volatile and speculative nature. However, that didn’t stop people from trading with Bitcoin despite its frequent ups and downs. 

Top bankers and members of financial regulators seem to be on the fence once again

They are once again repeating the same mantra that Bitcoin is very volatile and investors may lose their money.

Despite the harsh words coming from the ECB President, Bitcoin didn’t experience any downfall. Instead, the day after Lagarde’s claims, the cryptocurrency went above $40,000 for the first time.

Soon after, Bitcoin showed its volatile side and dropped by about 7%.

Lagarde’s sentiment was also shared by Gabriel Makhlouf, a governing council member at the European Central Bank. He spoke of the possibility that bitcoin investors can lose their investments in full. 

Earlier this January, the UK financial regulator called Bitcoin a “high-risk, speculative investment.” Furthermore, they said that people should treat their investments as such. People need to understand that they can potentially lose a lot of money dabbling in cryptocurrency.

While bankers and financial executives warn about Bitcoin investments, tech experts and analysts predict that cryptocurrencies have the potential to be the “next great tech stock.” They think that one of the scenarios is that cryptocurrencies might even grow in the same manner as some of the biggest tech startups such as Netflix, Amazon, Apple, Facebook, and Google did in the past few years.

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