Crypto Disaster: Bitcoin Was Called a ‘Ponzi scheme’ And Price Fell Below $6000

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Bitcoin price fell to a low of $5,995.58 for the first this year after the leading central banker said it posed a threat to financial stability.

Keep on reading to know more.

The end is near?

If you belong to the crypto owners and invested in Bitcoin then you’ve probably heard about the next in the series of bitcoin price crashes that pushed it back below $6000 mark on Feb. 06, according to CoinDesk.

bitcoin-crash-uk-banks-photo

Source: CoinDesk

Whom to blame this ?

Well, seems that the UK is the next country on the list that drowns bitcoin.

The new head of the Bank for International Settlements, Agustín Carstens, said bitcoin had become a combination of “a bubble, a Ponzi scheme and an environmental disaster” that threatened to undermine public trust in central banks.

“If authorities do not act pre-emptively, cryptocurrencies could become more interconnected with the main financial system and become a threat to financial stability,” he said, speaking at Goethe University in Frankfurt, Germany.

The move is aimed at protecting customers from running up huge debts from buying virtual currencies on credit, if their values were to plummet, a Lloyds spokeswoman said.

Carsten, a former governor of Mexico’s central bank, said that despite the meteoric rise of bitcoin, cryptocurrencies were merely “pretending” to be currencies and were “unsafe”, potentially facilitating tax evasion, money laundering and criminal finance.

His comments follow a string of warnings on bitcoin from authorities and economists around the world, including India, the US, and South Korea. Facebook has banned bitcoin and other cryptocurrency adverts on its site.

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Bitcoin price fell to a low of $5,995.58 for the first time this year after the leading central banker said it posed a threat to financial stability.
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