No, Bank of England, Crypto is Not the Same as Subprime Mortgage Debt
The Breakdown
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Cryptocurrency
The price of bit coin has fallen by over ten % in a single day on nearly 30 occasions in the past five years. Cunleff: Investors losing money on speculative investments does not, inand of itself, constitute a financial stability problem. Though it may well be a concern for authorities responsible for investor protection. It is a necessary feature of the financial system that investors who understand the risk of speculative investments can make losses, including large ones, as well as gains. The responsibility of the financial stability authority is to insure that the system is resilient,. so that price corrections and consequent losses can ur without knock on effects on the financial system as a whole.
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