Cryptocurrencies a ‘Load of Nonsense’, Claims ECB Council Member

[cybersofts]

Bitcoin and other top cryptocurrencies have just started recovering from their 16-month low. But a reputable member of the European Central Bank’s governing council believes that there is more room for collapse.

Ardo Hansson, the governor of Bank of Estonia, has claimed that cryptocurrencies would die as a complete load of nonsense while speaking at “5 Years with the Euro” conference in Latvia. The policymaker assured that the bubble has already started to collapse and it should continue to do unless the market reaches “a new kind of equilibrium.”

In 2017, interest in the digital currency space snowballed into a violent purchasing spree as its market capitalization soared above $813 billion. It then plunged last year to as low as $100.96 billion, leading to a wipe-off of almost 86 percent of the digital assets. Those who got in and out timely made huge bucks. And those who didn’t exit suffered.


Global Crypto Market Cap | Source: CoinMarketCap.com

“I think we will come back a few years from now and say how could we ever have gotten into this situation where we believed this kind of a fairy-tale story,” said Hansson.


No Risks to Financial Stability
In one of his earlier statements at the beginning of 2018, when Bitcoin was soaring near $19,000, Hansson had compared the crypto euphoria with a real bubble that may be worse than the Tulip mania of the 17th century. The US-born economist in the same breath had cleared that cryptocurrency bubbles would not pose risks to financial stability.

    “The volumes are too low. If they rise sharply and loans are raised in a big way to massively buy such assets, then it could be a danger. Currently, however, it is a problem for investors and consumers. Some people will probably make a lot of money. But many people will probably lose a lot of money too,” Hansson had said.

Hansson repeated his concerns over the growing relationship between the regulated financial sector and virtual currencies. He warned authorities of the potential risks posed by the new asset class if “grandmothers start investing” in them.


Hansson Didn’t Mention Bitcoin
Hansson didn’t mention Bitcoin while asserting his views about the crypto bubble which was very unlikely of a chief economist. A section of mainstream and crypto media has already picked Hansson’s statements as anti-Bitcoin which appears unconfirmed.

    ECB'S HANSSON: CRYPTO ASSETS ARE `NONSENSE,' BITCOIN TO DIE

    — zerohedge (@zerohedge) January 7, 2019

CCN is attempting to reach Hansson’s office for more clarity over his stance on Bitcoin. We will update this article as soon as we receive a response.


Reference: https://www.ccn.com/cryptocurrencies-a-load-of-nonsense-claims-ecb-council-member/

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[cellard]

Just the cyclical comments about Bitcoin dying that we have heard since day one, meanwhile it keeps churning out blocks every 10 minutes without caring about what anyone has to say about the thing.

All of these bankers cannot fathom the concept of money outside of the supervision, regulation and definitely control of the money, so Bitcoin will always be "dead" or "about to die" at any rate for them, meanwhile and like I said before, blocks will keep coming every 10 minutes.

[darewaller]

I would expected something like this from FED or UK central bank but from Estonia it seems a bit weird. Estonia has been one of the biggest online countries in the world even giving chances to people to get citizenship and starting online business based on Estonia (with the tax going to them of course) quite easily. When you are head of a central bank of a country that is so much heavily invested into online world you should be really careful about what you say about the "online money" to begin with.

Crypto companies are looking to start their companies in Estonia for more relaxed laws there and help them get more money from taxes may not like what he is saying. Of course the reason why bitcoin exists is to end central banks like he is leading but nevertheless we are not trying to destroy them, we are just creating competition.

[stoat]

Some dead-out Eurocrats opinion on something he doesn’t get.

[alyssa85]

I would expected something like this from FED or UK central bank but from Estonia it seems a bit weird. Estonia has been one of the biggest online countries in the world even giving chances to people to get citizenship and starting online business based on Estonia (with the tax going to them of course) quite easily. When you are head of a central bank of a country that is so much heavily invested into online world you should be really careful about what you say about the "online money" to begin with.

Crypto companies are looking to start their companies in Estonia for more relaxed laws there and help them get more money from taxes may not like what he is saying. Of course the reason why bitcoin exists is to end central banks like he is leading but nevertheless we are not trying to destroy them, we are just creating competition.

Estonia joined the euro, and this is part of rubbishing competitors to the euro. If the euro suddenly collapsed people would want to get their money into something different. Buying bitcoin (which can then be converted to dollars) might be easier than buying dollars directly.

[dothebeats]

Ahh yes, a banker who probably has no idea about decentralized systems and the concept of anarchy giving out his wise opinion regarding a topic he cannot grasp. These statements about bankers telling people that bitcoin is dying and isn't worthy of something just wouldn't stop. Meanwhile, on other parts of the world, institutional investors are doing things to get them a closer view of what's happening within the cryptocurrency markets, so that kinda nullifies what Hansson is talking about IMO.

[hatshepsut93]

Ahh yes, a banker who probably has no idea about decentralized systems and the concept of anarchy giving out his wise opinion regarding a topic he cannot grasp. These statements about bankers telling people that bitcoin is dying and isn't worthy of something just wouldn't stop. Meanwhile, on other parts of the world, institutional investors are doing things to get them a closer view of what's happening within the cryptocurrency markets, so that kinda nullifies what Hansson is talking about IMO.

Well, if he'd start praising Bitcoin and crypto, he would be undermining his job security. People would start asking why they need to trust bankers if they can use a solution without intermediaries.

But as years pass, the argument that Bitcoin is a bubble and a fad, like a tulip bulb, becomes weaker and weaker. Everyone sees that Bitcoin wildly fluctuates in price, but if very far from dying and actually increases in value over time.

[deisik]

Ardo Hansson, the governor of Bank of Estonia, has claimed that cryptocurrencies would die as a complete load of nonsense while speaking at “5 Years with the Euro” conference in Latvia. The policymaker assured that the bubble has already started to collapse and it should continue to do unless the market reaches “a new kind of equilibrium.”

It is gonna crash unless it is gonna surge. Okay, we get it

I would expected something like this from FED or UK central bank but from Estonia it seems a bit weird. Estonia has been one of the biggest online countries in the world even giving chances to people to get citizenship and starting online business based on Estonia (with the tax going to them of course) quite easily. When you are head of a central bank of a country that is so much heavily invested into online world you should be really careful about what you say about the "online money" to begin with

You make it look like this dude is the whole country

Even if Estonia is a small country indeed, he is not the only pebble there. Obviously, he just speaks for himself. Well, as a public figure, also for the institution he represents, in this case, the Bank of Estonia. But what else would you expect from a bankster at a coven of banksters? And I don't think he is quite free in what he says, so he may say one thing and think quite a different one

[omonuyak]

Bitcoin and other top cryptocurrencies have just started recovering from their 16-month low. But a reputable member of the European Central Bank’s governing council believes that there is more room for collapse.

Ardo Hansson, the governor of Bank of Estonia, has claimed that cryptocurrencies would die as a complete load of nonsense while speaking at “5 Years with the Euro” conference in Latvia. The policymaker assured that the bubble has already started to collapse and it should continue to do unless the market reaches “a new kind of equilibrium.”

In 2017, interest in the digital currency space snowballed into a violent purchasing spree as its market capitalization soared above $813 billion. It then plunged last year to as low as $100.96 billion, leading to a wipe-off of almost 86 percent of the digital assets. Those who got in and out timely made huge bucks. And those who didn’t exit suffered.


Global Crypto Market Cap | Source: CoinMarketCap.com

“I think we will come back a few years from now and say how could we ever have gotten into this situation where we believed this kind of a fairy-tale story,” said Hansson.


No Risks to Financial Stability
In one of his earlier statements at the beginning of 2018, when Bitcoin was soaring near $19,000, Hansson had compared the crypto euphoria with a real bubble that may be worse than the Tulip mania of the 17th century. The US-born economist in the same breath had cleared that cryptocurrency bubbles would not pose risks to financial stability.

    “The volumes are too low. If they rise sharply and loans are raised in a big way to massively buy such assets, then it could be a danger. Currently, however, it is a problem for investors and consumers. Some people will probably make a lot of money. But many people will probably lose a lot of money too,” Hansson had said.

Hansson repeated his concerns over the growing relationship between the regulated financial sector and virtual currencies. He warned authorities of the potential risks posed by the new asset class if “grandmothers start investing” in them.


Hansson Didn’t Mention Bitcoin
Hansson didn’t mention Bitcoin while asserting his views about the crypto bubble which was very unlikely of a chief economist. A section of mainstream and crypto media has already picked Hansson’s statements as anti-Bitcoin which appears unconfirmed.

    ECB'S HANSSON: CRYPTO ASSETS ARE `NONSENSE,' BITCOIN TO DIE

    — zerohedge (@zerohedge) January 7, 2019

CCN is attempting to reach Hansson’s office for more clarity over his stance on Bitcoin. We will update this article as soon as we receive a response.


Reference: https://www.ccn.com/cryptocurrencies-a-load-of-nonsense-claims-ecb-council-member/

Though we may see his comments as an attack on cryptocurrencies market and bitcoin but to some extent he really makes point.  Until bitcoin and most of the popular exchange get to the state of equilibrium we may not see any significant recovery.  Bitcoin is doing badly now because of the ways it went up in 2017.

[1Referee]

All of these bankers cannot fathom the concept of money outside of the supervision, regulation and definitely control of the money, so Bitcoin will always be "dead" or "about to die" at any rate for them, meanwhile and like I said before, blocks will keep coming every 10 minutes.

It's partly the fault of the mainstream media portraying Bitcoin and crypto in general as a replacement for the existing fiat currencies. Based on that, they believe that Bitcoin has failed because it's not being used as such, while they completely discard that it's not meant to be a currency, or at least, not at the current stage, because it simply isn't.

Most people are idiots not able to understand that everything takes time to progress. It will probably take a decade or two before we can see Bitcoin become a proper currency, and even then there might be hiccups left and right we have to go through. These dudes have no clue about how Bitcoin scales forward, what impact Lightning will have, etc. All they see is Bitcoin isn't a currency today, so it's useless by default. Ignorance.