BTC Hypothetical Value to be $1.8k, Federal Reserve Says

Author of the report shows historical evidence that suggests bitcoin is in a bubble, without saying firmly whether it is or not
24 May 2018   1856

The branch of the Federal Reserve Bank of San Francisco recently published a report on the instability of the bitcoin price, which is determined by the properties of the cryptocurrency, which complicates its classification as a currency or commodity. This is reported by CCN.

Joost van der Burgt, the author of the report and the consultant for the Fintech in the Federal Reserve, notes that bitkoyn is in the historical stage of the bubble.

…the exchange rate between two currencies can be regarded as a broad measure of the prices of one country’s goods and services relative to another country. When looking at the Bitcoin ‘exchange rate,’ this category of determinants seems to be inapplicable – there is no current native Bitcoin economy with native Bitcoin prices for goods and services.
 

Joost van der Burgt

Federal Reserve

Bitcoin has properties of securities, but does not fully fit into this category - it does not generate interest, dividends or capital gains.

At the same time, bitcoin as a commodity and often referred to as a "value depository" behaves the same way as gold and oil, but bitcoin does not have intrinsic value. Value of mining is only $1800, according to report.

PBoC to Continue Anti-Crypto Propaganda

The regulator published a warning in its WeChat account called “Protection of the rights and interests of consumers of financial services”
23 March 2020   162

The People's Bank of China has returned to criticism of cryptocurrencies amid a worsening economic situation in the world.

On March 22, the regulator published a large-scale warning in its WeChat account under the heading “Protection of the rights and interests of consumers of financial services”. It describes three ways in which cryptocurrency service providers can mislead consumers.

First of all, the amount of fraud transactions with bots is serious. The average turnover rate of the top three overseas crypto currency exchanges is much higher than that of foreign licensed exchanges. Second, market manipulation exists in these exchanges where forced leveraged trading eventually causes the exchanges to explode. Third, money laundering is a big issue.

 

People's Bank of China

In addition, the Chinese Central Bank calls the opinion that Bitcoin may serve as a protective asset, erroneous. The regulator indicates its high volatility and recommends that citizens not follow the example of other investors and refuse to participate in cryptocurrency trading.