Director of the Netherlands Stockholder’s Association Paul Koster seems to have something against bitcoin, and is calling for a full, legitimate ban on the cryptocurrency.
Koster argues that due to the recent price drop bitcoin is just too unstable, and he warns financial institutions and banks to avoid it:
“These volatile Bitcoin price fluctuations prove that this market is not supervised and/or regulated by any government or institution. As a result, it is impossible for banks, consumers, investors and retailers to estimate the potential risks of getting involved with Bitcoin.”
The director went on further to explain his distrust of bitcoin, saying:
“I really can’t understand why a newly-developed financial system outside of our current legal financial model is legitimate. I do understand technology is advancing at an accelerated pace, but I strongly feel central bankers should be wary and reluctant about getting involved in ‘other’ financial systems. In fact, it would be better if they prohibited Bitcoin immediately.”
Many seem to feel that Koster simply doesn’t understand bitcoin. Investments are usually risky no matter what, and as any professional investor will tell you the higher the risk, the greater the potential return. In the case of bitcoin, the price hasn’t always been bad. Many recall one of its highest points at the end of 2013, when one bitcoin was worth over $1,000 USD.
What do you all think? Does Koster have a point, or is his bitcoin knowledge limited? Post your thoughts and comments below.