It doesn’t matter how big bitcoin gets or how well it does. For many industry experts, bitcoin is nothing but a farce, and Gabriel Makhlouf – a governing council member of the European Central Bank – is one of the asset’s many doubters.
Gabriel Makhlouf: BTC Holders Should Be Ready to Lose Everything
Bitcoin has rallied over the past few days. The world’s number one digital currency by market cap has shot up from around $32,000 to well over $34,000 at the time of writing and has added almost five percent to its overall value in just the last few days alone. However, according to Makhlouf, traders are not seeing bitcoin in a proper light, and thus should prepare themselves to “lose all their money.”
In a recent statement, he explains:
Personally, I’m not sure why people invest in those sorts of assets, but they see them as assets clearly. Our role is to make sure that consumers are protected.
Also serving as the governor of Ireland’s central bank, Makhlouf has a strong background in finance, though to be fair, it is a centralized background in traditional financial institutions, and to an extent, one can argue that many figures in his place aren’t likely to understand cryptocurrency right away.
For example, we have all heard his arguments before. We have all heard time and time again that those who invest in bitcoin and cryptocurrency should never invest what they cannot afford to lose, as investing in crypto means one could potentially kiss all their assets goodbye given how volatile they are and how prone they can be market swings.
However, this is part of what excites the crypto community. The idea that one can easily be rich overnight. While there is also a certain amount of risk in that one can potentially lose everything, many who have lived through bitcoin’s recent rallies can say from experience that just about anything is possible with bitcoin and its digital cousins, and no doubt their portfolios are looking rather good over the past few months.
Makhlouf is offering sentiment that appears to be shared amongst many figures in the centralized banking arena. Recently, Agustin Carstens of the Bank of International Settlements commented that centralized fiat was vital to any economy, and that traders should be prepared for bitcoin to fully crash at some point in the future.
Investors must be cognizant that bitcoin may well break down altogether… Sound money is central to our market economy, and it is central banks that are uniquely placed to provide this. If digital currencies are needed, central banks should be the ones to issue them.
Make Sure You Invest in the Right Things
But while Carstens appears to be exhibiting rough symptoms of gloom and doom, Makhlouf just sounds like he doesn’t want traders to be disappointed. He says:
I worry more about consumers making the right choices.