The bitcoin’s price has lost around 10% of its value over the past week alongside etherium, BNB, cardano and dogecoin and two expert bankers have warned that a further collapse can occur.
The news of the collapse came as the country El Salvador adopted bitcoin as legal tender.
The banking giant Standard Chartered have predicted a sharper fall. The Bank said that the bitcoin and etherium prices could explode.
The governor of Riksbank Stefan Ingves said, “Private money usually collapses sooner or later. And sure, you can get rich by trading in bitcoin, but it’s comparable to trading in stamps.”
Meanwhile, Bank of Mexico governor Alejandro Diaz de Leon said bitcoin is more like a means of barter than “evolved” fiat money, calling the investment in bitcoin a high risk and a poor store due to its wild price swings.
The governor said, “Whoever receives bitcoin in exchange for a good or service, we believe that is more akin to bartering because that person is exchanging a good for a good, but not really money for a good,”
“People will not want their purchasing power, their salary to go up or down 10% from one day to another. You don’t want that volatility for purchasing power. In that sense, it is not a good safeguard of value.”
The bitcoin price has added a massive 350% over the last 12 months but it is still a high risk as on Tuesday alone it dropped by almost 20%.