Bank Of England Taking Bitcoin Seriously

Can bitcoin cause a crash? Well this question has been bugging the minds of the finance academics. Some are trying to compare bitcoin to th Tulip Mania that gripped Holland in the 17th century. This month, Bank of England (BoE) weighed into the debate, publishing a major new piece of research. Ever since academics and experts have been poring over the report, especially its warning that cryptocurrencies could pose a threat to financial stability.

Bitcoin

What crash? Right now bitcoin is not being used extensively. It is still not clear whether bitcoin will become popular enough to pose a systemic threat to financial stability. But then why BOE is taking bitcoin so seriously? Bitcoins shotup from under$300 to almost $1100 in a few months some years back. Then bitcoin price fell sharply and it has been trading below $500 for many months. In the first week of 2017, bitcoin price once again shot up above $1000 after a few years. Bitcoins are becoming popular in China for a number of reasons. This was drove bitcoin price above $1000 in first week of 2017. Then the Chinese central¬† bank authorities didn’t like it and cracked down on bitcoin exchanges. This again forced bitcoin price to fall down below $700. Read this post on 7 emerging currencies that are challenging the hierarchy.

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