“Investors Taking Risks By Buying Bitcoins At This Moment” – ECB VP

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Goldman Sachs Latest to Label Crypto a Business Risk
Goldman Sachs Latest to Label Crypto a Business Risk

The vice president of the European Central Bank (ECB) has warned about the risks of investing in bitcoin at current valuations.

Speaking to CNBC, Vitor Constancio said developments in bitcoin’s price make it “a speculative asset by definition,” continuing:

“Investors are taking that risk of buying at such high prices.”

Read: How To Increase Your Finances By Investing On Your Mind

Bitcoin, the largest cryptocurrency by market capitalization, has seen astonishing rises in value in recent weeks that have seen it hit headlines worldwide.

In the last week alone, prices have shot past $8,000 to successive new highs that saw bitcoin peak at 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.

Read: How To Increase Your Finances Amidst A Recession 

Even so, Constancio told CNBC that the ECB is not in a position to regulate the cryptocurrency, saying, “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.”

His comments echo those of ECB president Mario Draghi, who in September indicated that the central bank does not have the authority to regulate cryptocurrencies.

Bitcoin prices have been fluctuating up and down the price charts and it is certainly a risk as much as it’s a dare profitability at the moment.

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SOURCECoindesk
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Bethel Chigozirim
Bethel Chigozirim is a passionate Writer, Editor, Speaker, Poet, Blogger and a bunch of many creative abilities. A trained Information Professional @Abia State University, a Public Speaker/Corporate Presenter and also a Certified Project Management Professional. She is a calculated risk taker with deep tech knowledge on investment, inspiration and lifestyle, with many online and offline publications to her credit. She is a Writer and Editor for Investment Watch; and most of her publications are geared towards inspiring people towards the right investment, Investment Opportunities, Personal Finance, Economy and Investment News. When she's not speaking, writing or exploring any of her creative abilities, you sure can find her reading, conversing with family and friends or finding a solution to a problem for the 13th Billionth time! You can follow/contact her by clicking any of the below: