Bitcoin may appear solid at the moment, but it is rapidly becoming obsolete, according two European Central Bank (ECB), experts. According to a blog post by the ECB, Bitcoin is rarely used in transactions and poses a reputational risk to banks. They argue that regulation may be misinterpreted to mean approval.
“Speculative bubbles are dependent on new money flowing in. Waves of new investors have also helped Bitcoin to prosper repeatedly. The manipulations of individual exchanges and stablecoin providers, etc., during the initial waves are well documented. However, it is less clear what stabilizing factors were after the supposed spring bubble burst,” the blog stated.
While some consider this steadiness in the face of several disasters as a sign of optimism, Ulrich Bindseil and Jurgen Schaaf describe it as “an artificially induced last gasp before the road to irrelevance.”Bitcoin’s price peaked at $69,000 in November 2021 before plummeting to $17,000 this summer, according to the report’s authors, Bindseil and Schaaf. Source: Coincu Source: CoincuDISCLAIMER. The information on this website is intended to provide general market commentary but not as investment advice. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comHaroldCoincu NewsTags: bitcoincryptoECBStablecoin