Crypto Alerts: Despite an audacious plan to boost the bitcoin price, the price of bitcoin and cryptocurrencies fell sharply this week.
The bitcoin price has dropped around 10% in the last week, with Ethereum, Cardano, Binance’s BNB, Ripple’s XRP, and the meme-based dogecoin experiencing even steeper drops, despite the fact that El Salvador previously adopted bitcoin as legal tender and banking giant Standard Chartered predicted the bitcoin and Ethereum price could be about to explode.
The price of bitcoin rose throughout August, but heavy selling wiped out more than $300 billion from the combined value of the world’s largest cryptocurrencies this week.
“Private money usually collapses sooner or later,” said Riksbank governor Stefan Ingves at a banking conference in Stockholm, according to Bloomberg. “And, yes, trading in bitcoin can make you rich, but it’s comparable to trading in stamps.”
Meanwhile, Bank of Mexico governor Alejandro Diaz de Leon described bitcoin as an “evolved” barter rather than “evolved” fiat money, describing it as a high-risk investment and a poor store of value due to its wild price swings.