Ardo Hansson, Governor of the Central Bank of Estonia, said that cryptocurrencies are "no more than a bubble that will burst", speaking at the "5 years with the Euro" conference in Latvia, as reported by CoinDesk.
Bitcoin and other top cryptocurrencies only began to recover after falling to a 16-month low. But an authoritative member of the Council of the European Central Bank and the Governor of the Central Bank of Estonia believes that they will soon "burst".
According to Ardo Hansson, the "cryptocurrency bubble" has already begun to collapse, which means that soon everyone will understand that "crypto is just a fairy tale". To confirm his opinion, the economist gave an example of the graphs of the volatilityVolatility
– is a financial term that means a statistical indicator of price change. In the cryptocurrency world, it is used by traders as an indicator for managing financial risks. That is, it is a measure of trade risk and as a financial analytical tool for gambling. Details of crypto-assets – each drop in price was "lower than before."
A. Hansson: "Cryptocurrency tale"
According to Ardo Hansson, in 2017, interest in the crypto-sphere provoked a rapid growth in purchases, with a total market capitalization of more than 813 billion dollars. In the same year, the market collapsed to $ 100.96 billion, which led to a massive sale of tokens. Almost 86% of the coins were sold at low prices. Then the market recovered to collapse again at the end of 2018. Those who bought and sold coins on time were able to earn huge money.
"(...) I think that we will return to this issue in a few years and say that we once got into such a situation when we believed in a cryptocurrency tale" – from the statement of Ardo Hansson for "5 years with the Euro".
Recall that earlier in one of his statements in early 2018, when Bitcoin took off to nearly $ 19,000, Hansson compared crypto-euphoria with Tulip mania from the 17th century. Ardo Hansson called cryptocurrency a bubble and nonsense – this is not the first such statement by an economist. Because of their categorical position, the banker has already managed to give the nickname "anti-Bitcoin".
Editor: Yuliya Soroka