Irish Central Bank Says Bitcoin Investors Should Be Prepared To “Lose All Their Money”
The unfriendly relationship between cryptocurrencies and central banks doesn’t look like it’s ending soon. In a recent interview with Bloomberg, the governor of the Central Bank of Ireland, Gabriel Makhlouf, warned the general public about the risks of investing in crypto assets, bitcoin in particular.
Mirroring the same warnings the United Kingdom’s Financial Conduct Authority made recently, Makhlouf said he supports the UK regulator, noting that those investing in Bitcoin should be “prepared to lose all their money.”
Although the Irish central bank governor is not in favor of investors who consider cryptocurrencies like Bitcoin as assets for investment yet, he doesn’t see Bitcoin as a threat to global financial stability.
Makhlouf, a member of the European Central Bank’s governing council, said he is more concerned about consumer protection.
“Personally, I’m not sure why people invest in those sorts of assets, but they see them as assets clearly, and they see them as investments. Our role is to make sure that consumers are protected. As the main role, I don’t see financial stability issues at the moment arising from Bitcoin itself. I worry more about consumers making the right choices,” the governor said.
In a similar case, the European Central Bank (ECB) President, Christine Lagarde, shared her cryptocurrency view while calling for a global regulatory framework for digital assets. In a recent interview at the Reuters Next Conference, Lagarde noted that Bitcoin needs to be regulated to work properly.
Lagarde claims that criminals use cryptocurrencies to facilitate illegal activities like money laundering and terrorism financing; hence regulators should take precautionary measures to store future occurrences.
Novogratz: You Will NOT Lose All Your Money
While central banks are issuing warnings against crypto investments, big corporations and institutional investors like MicroStrategy, Square, and Marathon are bullish on bitcoin.
Bitcoin bull Mike Novogratz, founder and CEO of Galaxy Digital was quick to blast Makhlouf’s warnings while calling bitcoin a macro asset that will be around for a very long time.
“I am sick of this type of commentary. It’s just not true. Yes, it’s a 100% vol asset, and if you buy with leverage, it’s very risky. But unleveraged, you will NOT lose all your money. $BTC is a macro asset. Repeat 100 times. It will be around for a long, long time,” Novogratz said.