After a 16-month low, Bitcoin and other top cryptocurrencies are just beginning to recover. However, some experts believe that there is room for more collapse. One such person is but one of the most reputable members of the European Central Bank’s governing council, Ardo Hansson.
Ardo Hansson, the governor of Bank of Estonia, speaking at a “5 Years with the Euro” conference in Latvia claimed that cryptocurrencies would die as a complete load of nonsense. The policymaker assured that the bubble has already started to collapse and it should continue to do unless the market reaches “a new kind of equilibrium.”
In 2017, interest in the digital currency space snowballed into a violent purchasing spree as its market capitalization soared above $813 billion. It then plunged in 2018 to as low as $100.96 billion, wiping off almost 86 percent of the digital assets. Those who got in and out timely made huge gains and those who didn’t exit suffered.
“I think we will come back a few years from now and say how could we ever have gotten into this situation where we believed this kind of a fairy-tale story,” said Hansson.
At the beginning of 2018, when Bitcoin was soaring near $19,000, Hansson had compared the crypto euphoria with a real bubble that may be worse than the Tulip mania of the 17th century. The US-born economist in the same breath had cleared that cryptocurrency bubbles would not pose risks to financial stability.