Governor of PBoC criticizes: speculation with cryptocurrencies is "explosive".

The governor of the Central Bank of China spoke in a critical tone, regarding the speculation of cryptocurrencies and blockchain technology during a presentation in the media last Friday.

This information was given speaking at a press conference in the middle of the Two Sessions, the annual political event of China, the Governor of the People's Bank of China, Zhou Xiaochuan, "pointed or pointed out to cryptocurrency projects these have moved away from their presumed use cases in favor of what is essentially market speculation ". Therefore the investor who takes a bit of his assets to invest can see these resources evaporated, therefore, it is necessary to take the forecasts, invest little and not risk the resources necessary to lead a decent life.

"Many of the cryptocurrencies have experienced explosive growth that can have a significant negative impact on consumers and retail investors," Zhou said. "We do not like products in cryptocurrencies that offer a great opportunity for speculation that gives people the illusion of getting rich overnight." We must take into account the high risk due to volatility, short-term investments, can be very annoying for those who start in this ecosystem, reading about the background and behavior of cryptocurrencies, as bitocin is an example to consider.

The comment may indicate an increasing level of scrutiny or constructive criticism from the PBoC about initial offers of currencies and commercial services that are still available to domestic investors, even after regulators banned ICOs and essentially expel exchanges (Exchanges) to fiduciaries, these are outside their borders, that is to say they are no longer allowed in the domestic markets.

It also follows the recent measures taken by Chinese regulators to block the social network channels offered by the cryptocurrency exchanges that still provide commercial services in the country. This is a reality that hits the crypto ecosystem in China.

That said, the Central Bank still maintains what appears to be a positive view on blockchain development, and projects that attempt to provide genuine services to consumers. That position is also in line with PBoC's efforts to study technology applications through its digital coin research laboratory.

Likewise, on Friday, Zhou asked those who are behind such efforts to be cautious, and not to grow too fast. It is necessary to think each step so as not to make mistakes that cause discomfort to the users of cryptocurrencies.

In this regard, Zhou said: "For blockchain projects with technological potential, they should carry out extensive tests before deploying services. Otherwise, a reckless expansion can generate serious problems of security and financial stability ". In the cryptocurrency community there is concern about the great volatility of cryptographic assets, their prices rise like foam in moments, explanations can be varied, the results for some are fabulous, profits are counted by hundreds of thousands of dollars, for others who risk without prior study is a setback.

If a high bitcoin price date is taken into account, close to $ 20,000, which occurred in the month of December last year, the investor who bought it, should be lamenting, so far in 2018, the prices of this cryptocurrency has had ups and downs in a matter of hours, there is no explanation, the important thing is to study very carefully before buying, long term or short term, it can be a good investment, otherwise it is better to wait until the conditions improve. It waits for new announcements