Czech Central Bank Governor Warns: Bitcoin's Volatility Unmatched, Study It Anyway
1min read The Governor of the Czech National Bank, Aleš Michl, recently took to social media to caution investors about the risks associated with cryptocurrency investments. He emphasized that the crypto market is still in its early stages and will experience volatility, advising investors to only invest in assets they understand and are willing to bear the risk of total loss.
However, Michl singled out Bitcoin as a unique case, stating that it should not be confused with other cryptocurrencies. He encouraged central banks to study Bitcoin and explore the technology behind it, asserting that researching Bitcoin would not harm them but rather make them stronger.
Michl acknowledged Bitcoin's high volatility and the possibility of it moving towards two extremes in the future: either becoming worthless or immensely valuable. He also highlighted that Bitcoin is a high-risk asset suitable for professional investors who understand all the risks involved.
In related news, the Czech National Bank (CNB) had previously discussed a document on the management of international reserves in 2024 at the end of January. The CNB approved a proposal to analyze the choice of investing in other asset classes, indicating a broader interest in exploring alternative investment options.
