German Chancellor issued a bitcoin and crypto warning. Because of a boom in interest in digital assets over the last year, traders and investors. Are rushing into the market, causing bitcoin and cryptocurrency prices to soar even higher.
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Currently trading at just under $60,000, the bitcoin price has risen from under $20,000 at this time last year. With bullish investors forecasting a continued rise in the value of bitcoin. As well as the value of several other smaller cryptocurrencies.
Germany’s new chancellor Olaf Scholz expressed concern about the development of a “tulip”-style bubble. In the cryptocurrency market ahead of the latest price surge, which has propelled the bitcoin and crypto market. To around $3 trillion from lows of $150 billion by 2020. He added that “the currency monopoly” must remain in the “hands of states.”
Scholz stated in 2018, as published by Reuters and translated into English by Google. That “I would wonder whether [bitcoin and cryptocurrencies had] any possibilities as a monetary model.” According to Scholz, “the risk of it becoming a tulip inflation is very high.” German Chancellor Issued a Bitcoin and referring to the famous speculative tulip bubble that began in 17th-century Amsterdam. And ended in the early 20th-century.
Scholz, who is likely to take the lead in Germany’s efforts to transition to a green economy. Has also expressed concern about the energy-intensive manner. In which the decentralized bitcoin network is kept running.
A year’s worth of bitcoins is estimated to use around 200 terawatt-hours of
According to the University of Cambridge Bitcoin Electricity Consumption Index. The bitcoin network estimated to consume almost 200 terawatt-hours of electricity per year. Which is comparable to Thailand’s annual electricity consumption. At the beginning of this month, Swedish authorities called on the European Union. To prohibit also the use of energy-intensive bitcoin or cryptocurrency generation and network maintenance. A process known as mine, in the EU.
In a recent interview, Scholz slammed Facebook’s ambitions to launch also a cryptocurrency modeled. After bitcoin, referring to the improvements made by the social network in response. To regulator concerns as “cosmetic.”
Earlier this year, he stated, “I do not support private sector digital currencies.” He went on to remark. “We must do all possible to ensure that the currency monopoly stays in the hands of states.”
Other world leaders have also expressed concern about the expanding usage of bitcoin and other cryptocurrencies.
Additionally, Hillary Clinton, the former United States presidential candidate and secretary of state under President Barack Obama. Warned this week that the rise of bitcoin and other cryptocurrencies could jeopardize. The dollar’s standing also as the world’s reserve currency.
In a panel discussion at the Bloomberg New Economy Forum in Singapore. Clinton stated that “what appears to be an extremely interesting and somewhat exotic effort. To literally mine new coins in order to trade with them has the potential to undermining currencies. For undermining the role of the dollar as the reserve currency, for destabilizing nations. Perhaps starting with small ones but going much larger.” Clinton expressed hope that nations will begin paying more attention to the issue and that. “Nation-states will start paying greater attention.”