Bitcoin warning: RBS boss compares cryptocurrency to DANTE’S INFERNO

Earlier today the cryptocurrency surged towards $16,000 and in the past week Bitcoin has increased in value by $4,500, making its value grow by more than 900 per cent since the start of the year.

On Thursday afternoon it was trading at $15,800.

But RBS boss Sir Howard Davies issued a dire warning saying the cryptocurrency appeared to be a “frothy investment bubble”.

Sir Howard said on Bloomberg TV: “Put up the sign from Dante’s Inferno – ‘Abandon hope all ye who enter here’ – I think that’s probably what’s needed.”

The UK and other EU governments are taking steps to introduce greater controls, with the Treasury planning to bring cryptocurrencies into line with anti-money-laundering and counter-terrorism financial rules.

Despite the concerns bitcoin appears, so far, to be unstoppable with analysts at Saxobank estimating Bitcoin could peak above $60,000 next year, giving the digital currency a total worth of more than $1tn, before crashing to $1,000 by 2019 as regulators introduce greater controls.

Sir Howard’s warnings are not the first to come from other senior banking figures around the world, with the heads of Goldman Sachs, JP Morgan and the Nobel-prize-winning economist Joseph Stiglitz also commenting on Bitcoin.

Source: Bitcoin warning: RBS boss compares cryptocurrency to DANTE’S INFERNO