Since Bitcoin (BTC) began to gain traction and recognition in the world, it has always received discouraging comments. Adjectives like “bubble” and “fraud” have never been lacking. This time it is no different, and according to a member of the governing council of the European Central Bank, Bitcoin investors can lose everything. Let’s see what it says.
Authorities continue to highlight the risk of being Bitcoin investors
Gabriel Makhlouf is the authority who said that Bitcoin investors must be prepared to ‘lose all their money’. In an interview with Bloomberg he said that, “personally, I’m not sure why people invest in these types of assets, but they clearly see them as assets.”
Makhlouf, who is also the governor of Ireland’s central bank, said that, “our role is to make sure that consumers are protected.” This skepticism regarding Bitcoin and most cryptocurrencies is not alien to the European Central Bank, nor to many governments around the world.
For example, cryptocurrency is a “highly speculative asset,” President Christine Lagarde said this month. Bitcoin prices have more than doubled since November and surpassed $ 40,000 earlier this month.
However, volatility is part of its nature. It is no secret to anyone that large movements in its value are common in the case of BTC, with four daily oscillations of more than 5% in the last nine days.
And what can we say about BTC?
On Friday, Bitcoin rallied to as high as $ 35,000. This event is largely attributed to Elon Musk, who mentioned the cryptocurrency on his Twitter account. Still, Makhlouf does not see “financial stability issues right now arising from Bitcoin itself.” “I am more concerned with consumers making the right decisions,” he said.
At this moment it is valid to really ask ourselves who is right, if those who bet on Bitcoin or those who highlight the risk involved. However, both parties are right, those who invest en masse in Bitcoin are those who are willing to take the risk that this asset implies.
What you should ask yourself is not only if you are willing to run it, but if you have the financial conditions to run it without affecting the normal performance of your life.
The best advice is to always seek to inform yourself of the trends of price changes, evaluate your investment strategy very well and then make the decision.
As of this writing, BTC is worth $ 34,175, which is a 6% decline in the last 24 hours. Volatility remains at 1.11, so we can expect more ups and downs in the next few hours. However, the return from the beginning of the year to today is 15.87%. In other words, even with everything that has happened, the price has increased by this percentage since the beginning of the year.