Bitcoin Crypto Market May Crash, Says Swedish Central Banker

ByShehryar Makhdoom | Published date:
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Swedish central bank governor Stefan Ingves has warned that Bitcoin's value might plummet dramatically — and has likened the pioneering cryptocurrency to stamp collecting — compromising its legitimacy and long-term viability.

According to Bloomberg,

"Private money falls sooner or later," he remarked during a symposium on finance in Stockholm. "Trading in bitcoin can also make you rich, but it's equivalent to stamp collecting."

Bitcoin is developing a following in the financial technology sector and winning support from industry leaders, but it has also been subject to rising regulation from authorities worldwide. Nevertheless, Elon Musk, widely known for his work in the business world, favour cryptocurrency, while many others are still on the fence.

The future for cryptocurrencies differs considerably from one country to another.

The news from Sweden comes just after El Salvador became the first government to formally recognise Bitcoin as a means of payment, among other things.

Although Bitcoin has gained popularity in the United States, it has come under increased scrutiny in China, with regulators claiming that it is environmentally damaging and lacking intrinsic value. In the news release issued last month by Benzinga, Yin Youping, deputy director of the Chinese National People's Bank Finance Consumer Rights Protection Bureau, declared

Cryptocurrencies are "no legal tenders and no true value backing."

In expressing their reservations about the popular cryptocurrency, China and Sweden's central banks are not alone, particularly in light of recent discussions among authorities about the opportunity to establish government-backed cryptos that would be centralised in their respective countries.

A spokesperson for the Bank of England's fintech director claimed that

"Bitcoin, with its poor performance and energy inefficiency, is in no way a suitable parallel for the sort of technology we may deploy in a central bank digital currency," as quoted by Coindesk last month.

The central bank-backed digital currencies, which some Bitcoin proponents have been advocating, will likely not help cover the holes for individuals who previously were backing Bitcoin. On the other hand, advocates of Bitcoin claim that its decentralised character, in addition to other factors, makes it valuable.

Even though Bitcoin has struggled in the past to become a household name, the entire world is now watching how its global policy battles will play out.

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