Cryptocurrencies Slammed As Speculative Mania

karolek890 · 05-03-2018, 07:30 PM

The Governor of the Bank of England (BoE), Mark Carney, has slammed the rise of cryptocurrencies in a speech insisting that the huge price moves and volatility in cryptocurrencies like Bitcoin were ?speculative mania andcosts to mine Bitcoin are ?enormous. But he insisted it poses ?no material risk to financial stability - at least for now.

While asserting that thetime had come to ?hold the crypto-asset ecosystem to the same standards as the rest of the financial system, he argued that ?elements of this ecosystem should be regulated in order to ?combat illicit activities as well to promote market integrity and protect the safety and soundness of the financial system.

Even at their recent peak, the combined global market capitalization of crypto assets were less than 1% of global gross domestic product (GDP). And, as such, they are ?small relative to the financial system - even if they grew exponentially in 2017, he said.

As regards volatility, the Canadian economist noted that the ?average volatility of the top 10 cryptocurrencies by market capitalization ?was more than 25 times that of the U.S. equities market in 2017. And, Bitcoin was one of the more stable cryptocurrencies.

?This extreme volatility reflects in part that cryptocurrencies have neither intrinsic value nor any external backing. Their worth rests on beliefs regarding their future supply and demand - ultimately whether they will be successful as money, he contended.

Cryptocurrencies Slammed As Speculative Mania

Submitted by karolek890, 05-03-2018, 07:30 PM, Thread ID: 78555