The annoyance can escalate when a senior figure at the Federal Reserve declares that an entire asset class is "nothing more than a speculative asset, like a baseball card." That's just what Federal Reserve Board Governor Christopher Waller noted in remarks Friday. Bitcoin itself (USD-BTC) fell in trading on Friday afternoon, though not much, suggesting that the news may not have come as a surprise.
Waller substantially amplified the fatal factor from there. He stated that those who put money into cryptocurrency Not only should you not “…be surprised…” to lose it all, but you should also not “…expect taxpayers to socialize their losses.” However, Waller visibly softened on a couple of points. He suggested that it was time to investigate the use of blockchain outside of cryptocurrency. He further noted that a central bank digital currency in the United States did not seem like a worthwhile concept. However, he pointed out that Congress would ultimately be responsible for such a move.
Waller then encouraged those involved to ensure that the risks associated with cryptocurrencies are kept to a minimum. In addition, regulators were to refrain from "unduly" limiting the future of cryptocurrency development and operations.
Meanwhile, Bitcoin has slipped a bit in recent trading. However, it is still well above the level at which it has spent the better part of the last three months trading. Bitcoin would have to drop over $4,000 per coin just to hit the January lows.
