Three important points when trading cryptocurrency
In recent years, many people have begun to open their eyes to cryptocurrency. It is…
Every year, Great Britain s Bank presents a report on financial stability. In November 2021, last year’s report was presented. There one could see that cryptocurrency was described as “a potential risk to the financial system”.
The report states that this will not only be the case for Great Britain , but also on a global level. Cryptocurrency is thus considered to be a potential risk for all financial systems worldwide.
But getting a clear answer on the extent to which they believe that cryptocurrency is something to be warned about was far from easy!
There are a number of aspects of the concept of cryptocurrency that are pointed out in the report on financial stability. These are some of them:
It is this discovery that worries the team at Great Britain s Bank. Because if this becomes a reality and cryptocurrencies are exposed to a greater extent, then this will lead to consequences for the financial system as a whole.
But we are not in a situation where they want to sound the alarm. Ida Wolden Bache is Deputy Governor of Great Britain ‘s Bank, and she emphasizes that this is only a threat at the moment. Cryptocurrency can be a threat, but is not considered as it is now.
Despite the fact that cryptocurrency is highlighted as a potential risk at a global level, the Deputy Governor will not issue any general warning.
The reason is that the scope of cryptocurrencies is not as widespread in Great Britain as in the rest of the world at present. But she emphasizes that they are following closely, and the following areas are of interest:
At the time of writing, however, no activity in this area has been discovered in the Norwegian market.[main]
Cryptocurrency took the world by storm in 2009 . Although there were many who threw themselves into the trend, not everyone did. Some were sitting on the fence, and have been sitting there for almost 12 years.
If you want a clue as to how wise it is to invest in cryptocurrency with a view to the future, then you will not find the answer in Great Britain s Bank’s report on financial stability.
According to Wolden Bache, cryptocurrency is currently no threat. Therefore, she will not issue any warning, but emphasizes that there is a great deal of risk associated with this type of investment. So cryptocurrency – yes or no? You almost have to decide for yourself!