Federal Reserve Bank on Causes of Crypto Crisis
May 8, 2018
Federal Reserve Bank of San Francisco has conducted a study to find out that launching Bitcoin futures in December 2017 was the key factor for the first cryptocurrency rate drop having compared the situation to that with bonds in early 2000s.
The document says, creating blockchain has given birth to Bitcoin and altcoins. Bitcoin popularity added to its growth as many investors were quite sympathetic about cryptocurrencies. But soon after starting futures that gave everyone opportunity to purchase cryptocurrency crisis began and caused digital currency rate falling.
The authors are convinced, Bitcoin popularity as payment means and loyalty of the world governments will be the major factors for currency rates in the long term.
The Fed used to state earlier Bitcoin is highly volatile but voiced conviction it was no threat for economic resilience.