Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,48 trillion. Bitcoin increased by nearly 5% to reach around $40,000. Ethereum is up by almost 4% to cement its price above $2,100. XRP lost almost 1% in value this week. Almost all altcoins are trading in the green, with some exceptions. The DeFi sector increased the total value of protocols (TVL) to around…
Swedish Central Bank governor, Stefan Ingves, believes that bitcoin is similar to trading stamps, and it will soon collapse without the government’s backing. He made the remarks during his speech at a banking conference held in Stockholm earlier today. Although he admitted that one can get rich by trading the flagship crypto, he said ‘it’s comparable to trading in stamps.’
Ingves on Bitcoin’s Alleged ‘Imminent’ Fall
As per Bloomberg, the Riksbank governor challenged the possibility of currencies retaining their power without backing from the world’s governments. He also said that private money tends to collapse as time passes.
Despite getting endorsements from famous figures like Mike Cuban, Bitcoin is not a bankers’ favorite. Banking experts like Ingves still believe BTC is similar to the historical Tulip bubble. Ingves suggests that the survival of bitcoin and other cryptocurrencies depends on government regulation.
In early 2021, Ingves made similar comments on a similar title as “Bitcoin could collapse” and stated that the new monetary system is unlikely to dodge government regulation soon. According to him, when a chance to gain wealth becomes too big, many parties become interested. These parties include criminal masterminds, and hence financial watchdogs need to minimize illegal activities like money laundering and fraud.
So What is the Fate of Bitcoin?
Since bitcoin is yet to become an official form of payment in most countries worldwide, many deem it illegal.
Central bankers have conducted their research and come up with their opinions to encourage or discourage bitcoin trades. According to CNBC, Bank of England governor Andrew Bailey also advised against investing in cryptocurrencies in May 2021. He said that this money has no intrinsic value. Also, someone should only invest in it when they are ready to lose all their money.
The Crypto boom has received varied responses from governments and central banks. This happens even if the king coin received support from influential figures like Elon Musk and Hollywood stars. It remains a mystery whether the governments and their banks will accept the Bitcoin era or fight it.