Haruhiko Kuroda, governor of the Bank of Japan, has joined other central banks to attack Bitcoin (BTC) amidst the current volatility.
Haruhiko argued against the potential of Bitcoin stating, “Most of the trading is speculative and volatility is extraordinarily high. It’s barely used as a means of settlement.”
Central banks have taken Bitcoin’s current price dip as an opportunity to attack the cryptocurrency and the cryptocurrency market in general. His remarks are similar to those of his peers. U.S Federal Reserve Chair, Jerome Powell, said in April that cryptocurrencies are simply vehicles for speculation. Likewise, European Central Bank Vice President, Luis de Guindos, says the tokens shouldn’t be seen as real investments.
Andrew Bailey, governor of the Bank of England early this month, warned that cryptocurrency investors were liable to lose all their money. However, as tweeted by PlanB, creator of the Bitcoin stock-to-flow model, long-term BTC “hodling” of Bitcoin for at least 200 weeks (four years), has never resulted in a loss position for owners.
In fact, despite Bitcoin’s 50% dip that happened last week, Bitcoin is still up about 22% year-to-date and has returned 4X gains for holders over 1 year. Billionaire hedge fund manager, Ray Dalio, has praised Bitcoin to be a better savings instrument than government bonds.
Apart from criticizing Bitcoin, the Bank of Japan governor also mentioned the concerns of other central banks relating to the potential viability for stablecoins as long as their issuers conform to strict regulatory protocols.
Bitcoin is currently trading at $36,800, down 7.20% in the last 24 hours.