Receive all Bitcoinist news in Telegram! The US Federal Reserve issues a warning, urging that measures may need to be taken in the future to prevent financial instability if more money is invested in Bitcoin. More serious financial stability issues may result if they achieve wide-scale usage. Indeed, how to bitcoin usage and define this new asset is complicated.
Could Cryptocurrencies Take Over the US Dollar as World Reserve Currency? Randy Quarles went on to say that an economic system could be greatly challenged by liquidity and credit risks brought about by a lack of a stable exchange rate between cryptocurrency, such as Bitcoin, and the US dollar in times of adversity. Given that Bitcoin specifically is seen as a potential successor to the US dollar, why would anyone want to exchange a dominant, backed currency for fiat currency that’s backed by government decree? For the Federal Reserve, as with the Chinese government, they serve a role in protecting the average citizen, to warn them of danger. Anyone looking to make a short-term profit from Bitcoin should seriously consider other less volatile options.
Is the warning valid and is the Federal Reserve the right organization to be issuing it? Let us know what you think in the comments below. Images courtesy of Wikimedia Commons and Bitcoinist archives. Japanese internet giant GMO has announced pre-orders for its B2 Bitcoin miner — the world’s first miner equipped with 7nm processing technology. Ella Zhang, the individual in charge of Binance’s venture incubator Binance Labs, doesn’t have a particularly fond view of the current cryptocurrency market. Speaking to Bloomberg, Binance Labs’ Ella Zhang stated: We’d like the bubble to break.