Yes again? Yes, but this time it comes from the governor of the Bank of Japan who treats bitcoin as a purely speculative asset.
Governor’s warning pointed to high volatility in bitcoin
Haruhiko Kuroda, the current governor of the Bank of Japan, thus joins the many institutional detractors of cryptocurrencies and in particular of BTC. According to comments collected by Bloomberg, reviews of Mr Kuroda against bitcoin would go a little further than volatility: “Most of the trading is speculative and the volatility is extremely high. Moreover, it (bitcoin) is hardly used as a means of payment. ”
The critics come after this big bitcoin correction (or market reversal?) Of 53% from over $ 64k to $ 30k in just over a month. This would be the strongest retracement in bitcoin history during a bull run if ever the uptrend continues in the short term.
Indeed, Koruda is the latest central bank senior official to criticize bitcoin. However, earlier in May, Luis de Guindos, the vice president of the European Central Bank asserted that cryptocurrencies had weak fundamentals and that they were not real investments. In the same vein as of Guindos, Andrew BaileyGovernor of the Bank of England warned that crypto investors were liable to lose everything.
Would they be so afraid of cryptocurrencies that they don’t hesitate to put them all in one basket? It is certain that there are more than shitcoins that real projects with a real utility but from there to qualify them all as poor investments, it is too simplistic. In one of the last tweets from the creator of the model stock-to-flow for bitcoin, PlanB, he quite rightly recalled that someone who bought bitcoin (regardless of the price) and held it for at least 200 weeks has NEVER lost a single euro, dollar or other.
Finally, and despite this 53% drop in bitcoin, it is still very positive in 2021, between the 1er January and as of this writing (btc at $ 35.5k) it’s still at 22% value. How many assets do you get 22% in just 5 months?
Behind the generic signature “TCT editorial staff” are young journalists and authors with particular profiles who wish to remain anonymous because they are involved in the ecosystem with certain obligations.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.