Bitcoin and cryptocurrency prices have risen over the past year, fueling interest in the digital asset space as traders and investors pile up.
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The price of bitcoin is now trading below $60,000, up from just under $20,000 this time last year – bullish investors continue to predict the price of bitcoin as well as the price of some smaller cryptocurrencies.
Ahead of the latest price hike – propelling the bitcoin and crypto market from a 2020 low of $150 billion to nearly $3 trillion – Germany’s new Chancellor Olaf Scholz warned if a “tulip”-style bubble could develop in the crypto market – “ currency monopoly” must remain in the “hands of the states”.
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“I doubt whether [bitcoin and cryptocurrencies have] Any possibility as a currency model,” Scholz reported since 2018. Reuters and translated into English by Google. “The danger is very high that it will become tulip inflation,” Scholz said, referring to the famous speculative tulip bubble that began in 17th-century Amsterdam.
Scholz, who is expected to lead efforts to turn Germany into a green economy, also warned against maintaining the decentralized bitcoin network in an energy-intensive manner.
According to the University of Cambridge, the bitcoin network is thought to consume approximately 200 terawatt-hours of electricity annually. bitcoin power consumption index, equivalent to Thailand’s electricity consumption. Earlier this month, Swedish authorities called on the European Union to ban energy-intensive bitcoin and crypto creation and network maintenance – a process known as mining.
Most recently, Scholz criticized Facebook’s plans to launch a bitcoin-inspired cryptocurrency, calling the changes made by the social network to address regulatory concerns “cosmetic.”
“I do not support private sector digital currencies,” he said In November of last year, running Say: “We must do everything possible to ensure that the monopoly of money remains in the hands of the states.”
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Other world leaders have also warned over the increasing use of bitcoin and the cryptocurrency.
Last week, former US presidential candidate and secretary of state under President Barack Obama, Hillary Clinton, said the rise of bitcoin and cryptocurrencies could undermine the US dollar’s reserve currency position.
“To do business with them really looks like a very interesting and somewhat exotic attempt to mine new coins, with the potential to devalue currencies, to lessen the role of the dollar as a reserve currency.” ‘For unstable nations, maybe starting with small ones but getting huge,’ Clinton said, speaking during a panel discussion. Businesshala New Economy Forum in Singapore, and he expects “nation-states to start paying more attention to the rise of cryptocurrency.”