Sopnendu Mohanty, Fintech chief for Singapore’s monetary authority (MAS), said there was a crucial difference between Bitcoin and rival crypto-currency Ethereum, but it is far from clear whether either improves day-to-day transactions or has much potential as a tool for central banking.
He said: “Bitcoin has no natural intrinsic value.
“Can you buy a house with it? Can you use it for daily interactions? It may be valued at $18,000 right now but what I want to know is how you convert it into fiat currency and realize that value.
“The risk comes at the moment of conversion.”
Bitcoin prices are riding at an all-time high but the hyper-inflated exchanges are the tell-tale signs of a major crash about to happen, said the CEO of Patriarch Equity investment group.
Eric Schiffer, who has warn potential investors against jumping the bitcoin bandwagon, is certain the token’s days are numbered.
He told Express.co.uk: “I don’t want people to walk through what is going to be the bloodiest financial danger of the 21st century.”
Bitcoin prices have witnessed a meteoric rise over the past months, skyrocketing from less than £750 per token in January to £14,332.
The cryptocurrency’s prices saw another boost at the start of the week when the token entered the Chicago Board Options Exchange (CBOE) regulated future’s market.
Mr Schiffer said this has only served to fuel the imminent investor “slaughter”.
Outside of the crypto market, worries have also grown about the amount of money piling into the space.
A study by Anglia Ruskin University, Trinity College Dublin and Dublin City University released on Friday said bitcoin could pose a threat to the financial stability of traditional currencies and markets.
Larisa Yarovaya, one of the report’s authors and a lecturer at Anglia Ruskin University, said: “Our evidence finds that the price of Bitcoin has been artificially inflated by speculative investment, putting it in a bubble.
“Although bitcoin is not regulated by governments, it could still have a knock-on effect on traditional markets due to the interconnectedness of cryptocurrency markets with other financial assets.”