403 Forbidden Request forbidden by administrative rules. Receive all Bitcoinist news in Telegram! The US Federal Reserve issues a warning, urging that measures may weekend bitcoin to be taken in the future to prevent financial instability if more money is invested in Bitcoin.
More serious financial stability issues may result if they achieve wide-scale usage. Indeed, how to treat and define this new asset is complicated. Could Cryptocurrencies Take Over the US Dollar as World Reserve Currency? Randy Quarles went on to say that an economic system could be greatly challenged by liquidity and credit risks brought about by a lack of a stable exchange rate between cryptocurrency, such as Bitcoin, and the US dollar in times of adversity. Given that Bitcoin specifically is seen as a potential successor to the US dollar, why would anyone want to exchange a dominant, backed currency for fiat currency that’s backed by government decree? For the Federal Reserve, as with the Chinese government, they serve a role in protecting the average citizen, to warn them of danger.
Anyone looking to make a short-term profit from Bitcoin should seriously consider other less volatile options. Is the warning valid and is the Federal Reserve the right organization to be issuing it? Let us know what you think in the comments below. Images courtesy of Wikimedia Commons and Bitcoinist archives.
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