Cryptocurrency Round-Up: Bank of England and PayPal Founder Criticise Bitcoin

Stability reigns for bitcoin, however critics line up to highlight cryptocurrency's weaknesses.IBTimesUK

The price of bitcoin has continued its recent run of stability, shifting in value by less than 0.5% since this time yesterday.

Dogecoin's run of good form has continued with a 5% price increase in the last 24 hours, pushing its market capitalisation up towards $20m (12m, 15m) once again.

Following several weeks of steadily increasing prices, startcoin has experienced a significant surge in value. The "digital currency for crowdfunding" has seen its market cap double to $2m in the space of just a few hours, which could suggest a pump-and-dump.

Bank of England warns of bitcoin risk

The Bank of England has said that bitcoin and other cryptocurrencies would create an economy at risk of deflation if they overtook traditional fiat currencies as the main form of payment.

The finite supply of bitcoins, as well as its decentralised status, means that the amount of currency in circulation is unable to be adjusted in line with the value of goods and service, the UK's central bank suggests.

"The inability of the money supply to vary in response to demand would likely cause greater volatility in prices and real activity," the Bank of England said.

If bitcoin and other cryptocurrencies continue to become more widespread, it goes without saying that it is central banks like the Bank of England that have the most to lose.

PayPal co-founder unhappy with bitcoin payment system

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Cryptocurrency Round-Up: Bank of England and PayPal Founder Criticise Bitcoin