warning: Bitcoin price continued to drop after the Christmas holiday’s fiasco when virtual wallet holders saw the cryptocurrency declining for four consecutive days.
President Reagan’s former director of the Office of Management, David Stockman, said the cryptocurrency will not survive in the long-term.
In an interview with CNBC News, Mr Stockman said: “I don’t think regulators should do anything about it at all. It will take care of itself, it will burn out in a spectacular crash.”
He added: “All of these speculators will have their hands burned to a crisp and they will learn the proper lesson.
“What we really need to do is not say these are regulatory problems but understand they’re monetary problems. “
The central banks have flooded so much liquidity in the system and have created a speculative environment.”
Mr Stockman was asked why so many big trade operators are willing to bid on bitcoin despite the bad reputation the cryptocurrency continues to carry.
He replied: “Anytime Wall Street sees an opportunity to sheer the sheep and when they see the sheep stampeding to the feeder they line up to take advantage of the circumstances.
“There is nothing that’s been validated by the opening up of a future market, it’s just that everybody is trying to get on the train for the ride.”
Bitcoin price is valued at $13,855.92, according to CoinDesk at 2:23 pm on January 2nd. The cryptocurrency saw its highest value before the Christmas holidays when it reached the staggering price of just below $20,000.
Financial experts have discouraged people to buy and trade with bitcoin due to its incredible volatility. Most of them are of the opinion it is a bubble ready to burst. Technology investor Glenn Hutchins has claimed the bitcoin price is a distraction.
The Silver Lake Partners investor said he is far more excited by the broader cryptocurrency ecosystem than he is the dramatic price of bitcoin. He told the Financial Times: “I just really think people are missing the point.
“They should be talking about the companies. Bitcoin could turn out to be the winner; it could also turn out to be Betamax.”