It’s undoubtedly the end of an illusion – that bitcoin could become a global currency that would eventually replace the dollar or the euro. We can clearly see that bitcoin, and cryptocurrencies in general, cannot be considered reliable assets, or as economists like to say, a “store of value”, when their value fluctuates so much.
This isn’t how you go about investing your savings for your retirement. But we shouldn’t disregard the possibilities opened up by bitcoin and other cryptocurrencies, particularly on the technological front. It’s something that all central banks are looking at. For example, we’re investigating whether “blockchain” technology, which underpins bitcoin, could one day support our payment systems.