Top German Banker Warns Cryptocurrencies Could Precipitate a Financial Crisis
A top German banker, Jens Weidmann, commented Wednesday that digital currencies like bitcoin could cause a financial catastrophe. The banker alluded to the idea digital currencies are unstable and prone to violent fluctuations on the market. Weidmann said for people to expect banks to adopt digital currencies so the average citizen begin to have faith in them.
Read more here: http://bitcoinschannel.com/top-german-banker-warns-cryptocurrencies-could-precipitate-a-financial-crisis/
That argument needs some quantifying. Yes, in the beginning of the mania (like I believe we are just starting), it is wildly volatile. We’ve just seen 2 pretty good sell-offs in less than 3 weeks. This Alt-coin/Blockchain technology is not even a toddler yet and with less than 1 in 10,000 people having a BTC address it’s likely that we have a good 2 – 4 years more to go before the bubble pops. Once it pops, (and it will just like the housing market in 2008), the mean will return and this will stabilize it to behave more like a currency. In fact, it should become very stable more so than fiat currency which continues to be devalued faster and faster each year and subject to manipulation through central banking and the IMF.
we are no where near a bubble, we havent even had the appetizer yet, not even been served a glass of water, not even provided utensils #Thisisjustthebeginning
Definitely the first course!
Bankers are starting to worry. Good!