The head of Brazil's central bank took a harsh position toward bitcoin earlier this week, comparing the cryptocurrency to a pyramid scheme.
According to RttNews, central bank president Ilan Goldfajn was dismissive of recent price appreciation in the bitcoin market. And while he said it was key to "separate" bitcoin from other applications of its underlying technology, Goldfajn said that those buying cryptocurrencies are chasing the same kind of returns as those who invest in pyramid scams.
He was quoted as saying: "The bitcoin is a financial asset with no ballast that people buy because they believe it will appreciate. That is a typical bubble or pyramid [scheme]."
The president continued by confirming that the Banco Central do Brazil "is not interested in bubbles or illicit payments" and that such activities are "not something the central bank would like to encourage." The stance is notable given that legislators in Brazil are currently working on rules for cryptocurrency activity in the country. Whether Goldfajn's comments have an impact on that process remains to be seen.Source is here... I am sure that this comment coming from the head of Brazil's Central Bank is not affecting the market and value of Bitcoin in anyway as this kind of message or comment has been circulating all around the internet for a long time now and we can say that this is just a rehashed and nothing is new. This is just an extension of the Dimon effect but no thanks it has no bearing on the market this time.
Finance authorities can say anything they want to say for and against Bitcoin and that is just fine because the coin has already gone beyond that stage where anything those in authority may have said can create fear and apprehension among cryptocurrency traders all over the world.
We are however hoping that this kind of disparaging comment can never affect the future of cryptocurrency in Brazil and that they would not be following the steps taken by China. Brazil can be a good and big market for Bitcoin and if this market can be fully open then it can help in making Bitcoin go mainstream and can push the value further into the moon.
