Bitcoin investors could “lose all their money,” warns the board member of the European Central Bank

A member of the board of directors of the European Central Bank said Bitcoin investors should be ready to lose all of their investment, the latest warning from a central banker about cryptocurrency volatility. “As the British authority said a few weeks ago, people who want to invest in Bitcoin must be prepared to lose all of their money – that is certainly my opinion,” said Gabriel Makhlouf, member of the Governing Council, of Bloomberg. TV on Friday. Earlier this month, the UK’s financial regulator also said Bitcoin investors could “lose all their money”. Bitcoin and other cryptocurrencies are “high-risk speculative investments” and should be treated as such, according to the supervisory authority at the time. “When consumers invest in these types of products, they should be prepared to lose all of their money,” the Financial Conduct Authority said in a Jan. 11 statement. That assessment was shared on Friday by Makhlouf, who has also served as governor of Ireland’s central bank since 2019. ECB members have often urged investors to exercise caution when buying and holding crypto changes. In 2018, for example, board member Yves Mersch said that Bitcoin was “far inferior to existing payment options”. When Bitcoin hit new highs in mid-January, ECB President Christine Lagarde called for additional regulation of these assets.