Joachim Nagel, President of the German Bundesbank, said in an interview with the Focus sharp criticism of Bitcoin (BTC) practiced. He emphasized that Bitcoin is not a currency, but a highly speculative investment object. The strong price fluctuations and the lack of a real equivalent are a risk that he expressly warns against.
“No currency, just speculation”
Nagel expressed in one Interview with FOCUS clear concerns about Bitcoin and similar cryptocurrencies. “Even the term ‘cryptocurrency’ for Bitcoin makes me uncomfortable,” said the Bundesbank boss. The extreme ones Price fluctuations In his view, they are a clear sign that Bitcoin does not offer a stable basis as a means of payment or as a form of investment.
He drew parallels to previous speculative bubbles: “You always have to ask yourself: What is the substance? With Bitcoin there is only a mathematical algorithm, there is nothing more behind it, no authority like central banks, no real equivalent.” Stocks, on the other hand, have real companies and values behind them that give them substance.
Critical voices on central bank statements
Such statements from central bankers like Nagel are not without controversy. Critics point out that central banks’ rejection of Bitcoin is based not only on real risks but also on self-interest. With its decentralized character, Bitcoin stands in direct contrast to the centralized structures of central banks and could question their raison d’être in the long term. The general criticism is therefore strongly self-serving. An example of this problem was shown in the recently published anti-Bitcoin document from the European Central Bank (ECB), which has been heavily criticized by researcherswe reported back in October. They complained that the analysis was one-sided and ignored the advantages of cryptocurrencies. This controversy makes it clear that such warnings should be viewed in a differentiated manner, as they are not necessarily neutral.
“Not an investment for private investors”
Nagel emphasized that he had never invested in cryptocurrencies such as Bitcoin – neither as a central banker nor privately. “As a central banker on the Governing Council of the ECB, my investment options are subject to strict rules. But even as a private investor, I wouldn’t invest in crypto assets.”he explained.
Although Bitcoin as an investment undoubtedly involves risks, the cryptocurrency also offers potential that should not be ignored. Its decentralized approach allows financial transactions to be carried out independently of central institutions, which can be particularly advantageous in countries with unstable monetary systems. In addition, the underlying blockchain technology has the potential to revolutionize numerous industries and drive innovation.
With his statements, Nagel joins the position of many central bankers around the world who classify cryptocurrencies as speculative and potentially dangerous. However, when it comes to such warnings, one should always question the point of view from which they are issued and consider them in the larger context.