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Bitcoin expert Max Kaiser believes that the Bank of England will try to buy bitcoin before the asset rises to $ 1 million.
According to Kaiser, the Bank of England will consider the possibility of introducing bitcoin in the form of a process with five stages of grief. Kaiser believes that the bank is now in a phase of anger.
The negotiation phase will involve the central bank’s digital currency, and when nothing works out, depression will set in, as the price will exceed £363,000 ($500,000).
Then, before the price exceeds £727,000 ($1 million) per coin, the Bank of England will agree to buy bitcoins,” Kaiser said.
These statements were preceded by a statement by the deputy governor of the Bank of England, Sir John Cunliffe, that cryptocurrencies threaten the global economy, as a result of which he called for regulation of the sector.
According to Cunliffe, if strict rules are not developed regarding bitcoins and cryptocurrencies, they can provoke a financial crisis. He called asset volatility the main reason for banning bitcoin:
But as the financial crisis has shown us, you don’t need to account for a significant share of the financial sector to cause problems with financial stability. In 2008, the subprime business was valued at about $1.2 trillion.
The official added that bitcoin poses risks to stability, which can grow rapidly, affecting the overall financial system. In his opinion, the main problem is that crypto assets have no intrinsic value and are vulnerable to significant price corrections.
Cunliffe acknowledged that governments should be careful not to overreact and classify new assets as “dangerous” because they are different.
At the same time, he noted that the underlying technologies offer a radical improvement in financial services.
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