Crypto Volatility is Good, Stabilization can Lead to Financial Crisis: Dutch Economic Report

According to the  Dutch Economic Office, stabilization of the cryptocurrencies can greatly impact the global economy even leading to financial crisis.  It further talks about the risks involved in crypto market investments.

Earlier scenarios In the fray, Dutch recognizes cryptos

Previously, the Dutch were skeptical to a large extent of investing in cryptos, owing to which the Rotterdam Daily AD (Algemeen Dagblad) had published an article asking people to withdraw from their bitcoin investments as the market was subjected to high potential risks.

Adding to this opinion Goldman Sachs’ head of global investment research has also previously expressed a similar opinion in this regard.

Earlier this month, in a letter, addressed to the Dutch senate and house, Finance Minister Wopke Hoekstra had outlined his concerns over the rapid and dramatic growth in cryptocurrencies.

And just like his other global counterparts, he is also keen on to utilize the technology in another manner and explore it other aspects rather than the ones which are presently available.

Also, the Dutch court breaking its silence on cryptos, sought to accept their value as “transferrable” as Bitcoin, the major cryptocurrency showed liquidity in terms of its characteristics as a property right.

Also, read: Eurozone Financial Crisis to Bring in a RagingBitcoin Revolution

What Dutch economic office opines?

Netherlands office for economic policy analysis CPB opined that the real risks would be once the cryptocurrencies move ahead towards stabilization and could impact world economy as a whole concurring loss across the globe.

Further added by its RLTZ reports which publish annually about the risks involved in financial markets it said,

“In the worst case scenario, this could lead to another global financial crisis”.

The report questioned the cryptocurrencies by remarking on its actual status as substitutes for money, saying that

“investors do not use it in substitution to money rather they prefer using them only for investment scenarios just similar to the case of stocks and bonds.”

Adding to this the economists and analysts in this regard have opined that there is no reason to create a panic situation at this moment because it is none the way happening soon anytime and will take time to burst out the way it is predicted to be.

But at the same time, the researchers and economic advisers, looking at the high amount of risks involved have advised the investors not to indulge heavily in crypto markets and for the government to focus on developing blockchain technology for putting to alternative applications and cryptography to be further enthralled and reviewed.

Drawing from these responses and viewpoints from some really important economies, it would now be an interesting ordeal to witness the upcoming trends of the crypto market globally.

What do you expect the trend to be? What are your views on crypto volatility?