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RBNZ Governor: Bitcoin's huge ROI is like a bubble that can only be used if the value is stable

Bank of New Zealand Acting Governor think encrypted currency is too unstable.

He warned investors to pay attention to risk. He said bitcoin's huge return on investment in recent years looks like a speculative bubble, and because cryptocurrency is extremely volatile, it's hard to get any further use in the future.

Spencer told TVNZ in an interview last Sunday,

"Bitcoin is clearly a bubble for me, and we've seen too much financial bubble in the last 100 years, and the advent of bitcoin is a classic example, before it broke, no one knew it was up How high. "
Bitcoin has risen nearly 15 times this year and has had a strong purchasing desire as it expects bitcoin to become a legal currency instead of gold and even legal currency, with nearly 85% of the increase in the first two weeks. Bitcoin exchanges in the United States have been opened, and the CBOE, the first large-scale U.S. exchange, provides futures products in bitcoin (without endorsement and volatility from the central bank).

Bitcoin, which was mined through mining operations (computer operations), has been in excess of $ 16,000 last week, bringing the total market capitalization of all circulating Bitcoin to more than New Zealand's economy worth $ 185 billion. Early investors included the brothers of the Wenceslaws, who played an important role in the early formation of Facebook. In an interview with Bloomberg on Friday, Cameron Winkleworth said that the growth of Bitcoin has just begun and that it will be an upgraded gold substitute.

Price extremely "unstable"

Spencer said

"I think Bitcoin is a lot like gold, it's obtained through mining, it has a fixed amount, and its price is very volatile."
The New Zealand Central Bank is currently researching its demand for kiwi to see if it can be replaced in digital form when necessary, but Spencer said that Bitcoin will not be considered for digital NZ currency in the future.

"I think digital currency, cryptocurrency, is a real and sharp proposition of the future of society, but Bitcoin does not fall into this category," said Spencer. "I think cryptocurrencies should have more stable value to be able to be widely used."