Bundesbank Considers Bitcoin Risky

Carl-Ludwig Thiele, from the Bundesbank, told the Financial Times that the currency is highly speculative due to the way that is constructed and its high Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term.

The board member of Germany’s central bank fears that the users of this currency might lose all of their money, since there is no state guarantee behind it. Other officials are also worried of illegal activities, such as money laundering, which might be done using Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term.

His announcement follows the views of other central banks that expressed concern about the digital currency. The European central bank warned that transactions in bitcoins are not protected by any refund rights, while the central bank of France and the central bank of Malaysia also made negative remarks on the currency. The central bank of China went as far as banning banks from using it.

Some central banks do not see the digital currency as a threat. Ben Bernarke, the chairman of the Federal Reserve, said about bitcoin that “there are also areas where they may hold long-term promise”. Moreover, the ECB concluded that it does not pose a risk to price stability if its emission is controlled.