Cryptocurrency : Speculation with possible total loss

In the face of violent price fluctuations, German financial regulators have now warned about the cryptocurrency Bitcoin. "These are highly speculative transactions with the possibility of total loss," said Felix Hufeld, President of the Federal Financial Supervisory Authority (Bafin). In an interview with the Bild newspaper, the expert said that there would be "excesses that would produce bitter losers." Hufeld therefore advised caution. An investor must know "that in the worst case he can lose all his money". Hufeld announced regulations: his authority would "stay close to the ball". He spoke of a learning task. "We are all in the process of understanding this area and building know-how."


Two major US exchanges have now offered futures on the Bitcoin - so the crypto currency has arrived in the classic financial world. Since the beginning of the year, the Bitcoin has risen rapidly in value from about $ 1,000, the cryptocurrency climbed to nearly $ 20,000, just before Christmas rush to below $ 12,000. The higher the price rose, the louder were admonishing voices from politics and the central banks.
Bundesbank President Jens Weidmann had heavily criticized the Bitcoin earlier this week. "It's speculative, you can lose money with it," said Weidmann. To call Bitcoin a "digital currency", Germany's top currency guardian is misleading: a means of payment should indeed have a value stability. However, this property is missing from Bitcoin. However, Weidmann explicitly opposed regulation from a monetary policy perspective.