Bitcoin buyers have got a “serious warning” by one of the Bitcoin’s top financial regulators.
“If you want to invest in bitcoin, be prepared to lose all your money.”
Bailey told a lack of backing from the governments and the central banks for the world’s most popular digital currency evidence that puts money into bitcoin was not a secure investment. He also described that purchasing Bitcoin was akin to gambling since it has the same level of risk.
Bitcoin’s price growth has the critics and enthusiasts alike, leaving investors scrambling to understand the driving factors for the digital currency’s runaway rally.
Bitcoin has traded at $17,500 this Friday Morning, according to CoinDelite‘s Price Chart. Bitcoin has a market value of around $291 billion, the largest among the cryptocurrencies. A year ago, one bitcoin is worth around $780.
“If you look at what has happened this year, I would caution people. We know relatively little about what informs the price of bitcoin.”
Increasing interest from corporate and retail investors has prompted global exchange like CBOE to launch Future contracts. Meanwhile, the CME Group is poised to release Bitcoin Futures contract on Sunday and considered whether the German Stock Exchange Operator should follow or not.
According to some market participants, launching the Bitcoin Future contracts will represent a significant step in the legalization of Cryptocurrencies. Futures derivatives or financial instruments, which obligate the trader to buy or sell an asset at a specific time and at a specific price.