IS THERE A BITCOIN BUBBLE?

sweetparlot (31)in #bitcoin • 7 years ago

The head of financial regulation in Europe has said that the EU authorities are seeking ways to strengthen its supervision of the growing market for criptomonedas, warning that the recent rise in the value of bitcoin showed signs of being a "price bubble".
Valdis Dombrovskis, vice president of the European Commission, wrote to EU banks and market control bodies to urge them to do more to warn consumers about the risks of investing in bitcoins. In a letter, a copy of which was obtained by the Financial Times, he said that recent market volatility required "greater attention" from regulators.
"There are clear risks for investors and consumers associated with price volatility bitcoin and criptomonedas," Dombrovskis said, "including the risk of total voids loss of investment, operational and safety failures, market manipulation and responsibility "
The price of a bitcoin has more than doubled since mid-November, reaching a record high of more than $ 19,500 this week. The rise in prices fueled concerns among regulators of a bubble and caused comparisons with the dot-com mania of two decades ago.
Comments Dombrovskis occur after similar warnings last week by the Commission Securities and Exchange US (SEC acronym) and the head of the regulatory body in the UK, who warned investors they should Be prepared to lose everything if you bought bitcoin.
The SEC stopped this week the stock price of Crypto Company, a cryptocurrency trading company, for concerns about possible market manipulation. The value of the company had increased more than 2,000 percent this month.

Another company, Coinbase, which is one of the most popular cryptocurrency exchanges, said on Wednesday it was investigating the staff about possible insider trading on "bitcoin cash," a cryptocurrency using the same technology as bitcoin.
Brussels' concerns at this stage focus on investor protection issues, rather than the fear that cryptocurrencies pose a risk to overall financial stability.
Addressing journalists, Dombrovskis said: "Let me remind you that the value of bitcoin is not guaranteed by any country or issuing entity. Investors must realize that it can fall at any time. And virtual currencies like bitcoin are not really coins.