New Zealand's Central Bank Believes Bitcoin Looks Like a Bubble

The acting governor of New Zealand's Central Bank seems to believe that bitcoin is very similar to a bubble and that the cryptocurrency is too unstable. Because of its instability, the bank's acting governor, Grant Spencer, believes that the cryptocurrency cannot be useful in the future.

Governor Spencer made these statements in an interview with TVNZ on Sunday. He said during the interview that:

“It looks remarkably like a bubble forming to me. Over the centuries we’ve seen bubbles, and this appears to be a bit of a classic case. With a bubble, you never know how far it’s going to go before it comes down.”

New Zealand's Central Bank governor compares bitcoin with gold

Spencer's statement came after bitcoin grew spectacularly in the past two weeks managing to stay somewhat stable in the $15,000 price range. Last week, the cryptocurrency overpassed $16,000. Spencer actually compared in his interview bitcoin with gold. He said that bitcoin is mined, has a fixed quality and its price is very volatile.

Spencer did not rule out the possibility of having only cryptocurrencies in the future. In fact, he believes in the future of cryptocurrencies, but not in the future of bitcoin. Spencer stated that:

“I think digital currencies, cryptocurrencies, are a real and serious proposition for the future. I think they are part of the future, but not the sort that we see in bitcoin. I think a cryptocurrency that has a more stable value will be the sort of cryptocurrency that’s more useful for the future.”

Opinions are shared when it comes to the future of bitcoin. Some seem to believe that the cryptocurrency is going to grow to $40,000 in the near future, while other think it could blow up at any moment and lose its value in a matter of a few hours.

For instance, Alibaba's founder and executive chairman Jack Ma recently said that he was confused about bitcoin and that he knows very little about the cryptocurrency. He concluded that bitcoin is not for him and this is not something he focuses on.