According to Vitor Constancio, the European Central Bank’s (ECB) current vice president,purchasing bitcoin in the current price range is a risk for investors.
Bitcoin is a “very particular asset,” Constancio said and went on to explain his view of it additionally being a “…speculative asset by definition looking to the developments in its price. Investors are taking that risk of buying at such high prices.”
In the past week, the price of bitcoin spiked over $11,000, oscillating around this psychological before making a bullish advance toward $11,800 on December 3. Various altcoins have not been far behind, rising in unison with the leading cryptocurrency, although less drastically.
Unperturbed by its ups and downs, many remain hopeful for the future of bitcoin. There has been speculation that it may climb as high as $40,000 by the end of 2018, with billionaire investor Mike Novogratz being one of the most famous advocates of this belief. Novogratz additionally predicted a market cap of $2 trillion for the same year.
He did mention, however, that there are likely to be significant crashes to accompany the surges, as the technology struggles to match the pace bitcoin has set.
In an almost uniform approach, the majority of central banks have been hesitant to embrace the cryptocurrency market, presumably due to the high-risk attached the reward. Vitor Constancio said earlier in November that the fiat system would never be replaced by digital currencies…