The new Federal Chancellor Olaf Scholz seriously warns of Bitcoin and crypto bubbles

Bitcoin and crypto prices have skyrocketed over the past year, fueling interest in the digital asset space as traders and investors flock to the scene.

BTC is currently trading at around $ 54,000, up from under $ 20,000 last year – with investors optimistic that the price of Bitcoin, as well as several smaller cryptocurrencies, will continue to rise.

After the recent bull run, which drove the entire BTC and crypto market capitalization from a low of 150 billion US dollars in 2020 to around 3 trillion US dollars, the new German Chancellor Olaf Scholz warned of a type bubble and further emphasized, that the “money monopoly” must be in the hands of the “countries”.

Olaf Scholz – New YearGerman generals

In 2018 he once commented:

“I think BTC and cryptocurrencies have no prospect of becoming a money model.”

Now he continues to hold his own by comparing BTC to the famous speculative tulip bubble that began in 17th century Amsterdam:

“The risk is high that it will lead to tulip inflation.”

Scholz is said to lead efforts to transition Germany to a green economy and also warned of the energy-intensive decentralized Bitcoin network.

According to Cambridge University’s Bitcoin Electricity Consumption Index, the Bitcoin network consumes nearly 200 terawatt hours of electricity annually, which is the same as Thailand’s electricity consumption. Earlier this month, the Swedish authorities called on the European Union to ban Bitcoin and other energy-intensive cryptocurrency mining in order to keep the network going.

More recently, Scholz criticized Facebook’s plans to launch a Bitcoin-inspired cryptocurrency, calling the changes the social network made to address regulatory concerns a “new bottle of wine.”

“I am not in favor of private digital currencies. We must do everything possible to ensure that the currency monopolies remain in the hands of the nations. ”

Other world leaders are also warning of the increasing use of BTC and cryptocurrencies.

Last week, Hillary Clinton, Secretary of State under President Barack Obama, said the rise of bitcoin and cryptocurrencies could weaken the reserve currency status of the U.S. dollar.

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