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Bitcoin could collapse, warns Central Bank of Sweden

Sweden’s central bank governor compared the Bitcoin market to commercial stamps, questioning the staying power of coins without government support.

Bitcoin could collapse, warns Central Bank of Sweden

The headquarters of the Riksbank, Sweden’s central bank, stand in Stockholm, Sweden, on Thursday, Nov. 29, 2012. (Image: Casper Hedberg/Bloomberg)

“Private money usually collapses sooner or later,” said Riksbank (Central Bank of Sweden) Governor Stefan Ingves at a banking conference in Stockholm. “And of course you can get rich trading bitcoin, but it’s comparable to trading stamps.”

While Bitcoin has gained from the endorsement of names like Elon Musk and Cathie Wood of Ark Investment Management, some central bankers have compared the bubble to 17th-century tulips.

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The rise of Bitcoin, however, is caused by the problem of the need for trust in central banks. It’s no surprise that its increased adoption and resistance to censorship bother bankers.

Earlier this year, Ingves said that Bitcoin and other cryptocurrencies are unlikely to escape regulatory oversight as their popularity grows.

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