Danish Central Bank Says Bitcoin is Dangerous
There is no doubt in the fact that more and more central banks have started to talk about bitcoin and some have warned investors about the risks that bitcoin investments could bring. This time, the director of Denmark's central bank has decided to issue a warning to investors to not purchase bitcoin.
In fact, the director of the country's central bank, Lars Rohde, has asked investors to stay away from bitcoin. The statement was made in a recent interview. Rohde was quite critical about bitcoin, saying that it is an alternative to casinos and that it is actually dangerous. Rohde has asked all investors to avoid bitcoin.
“You have to stay away. It is dangerous. It’s an effective way to play. So if you do not like casinos, you’ve got a good alternative.”
This is not the only thing that Rohde had to share about bitcoin. He also said that the cryptocurrency is like a bubble. Given the high growth experienced in the price of bitcoin, Rohde said that the cryptocurrency is "out of control."
Economists think bitcoin represents no threat to the financial system
Well, some central banks shared the same opinion as Rohde. But, of course, there are many analysts who also think that bitcoin, as well as other cryptocurrencies, don’t actually represent a threat to the stability of the financial system. Actually, a group of European economists have recently published a survey indicating that the bitcoin represents no threat.
However, the same research said that more regulatory intervention might be required from authorities. The study was conducted by the Center for Macroeconomics from the UK.
Around 100 economists attended the survey and shared their opinions about bitcoin. The economists also raised some questions on the role of bitcoin and what its growth means for the traditional financial system.
