Bitcoin Update: "Bitcoin Should Not Be Lumped Together with Other Crypto Assets", Says Czech Central Bank Governor

Czech central bank governor Aleš Michl has provided an update after proposing that the Czech National Bank (CNB) should allocate a portion of its reserves

Czech central bank governor Aleš Michl has provided an update after proposing that the Czech National Bank (CNB) should allocate a portion of its reserves into Bitcoin.

In a post on Twitter, Michl stated that Bitcoin “should not be lumped together with other crypto assets”, and encouraged central bankers to study its underlying technology.

Bitcoin Update: I’ll start broadly: if you intend to invest in crypto assets, exercise extreme caution. The market is still in its infancy. I remember the 1990s in our country, when the transition from socialism to capitalism saw the birth and simultaneous collapse of many… https://t.co/UxGF0R7NwO

Michl says that the CNB is currently analyzing a proposal to create a test Bitcoin portfolio, and the decision on whether to invest in Bitcoin will ultimately depend on the central bank’s board.

The CNB governor made sure to emphasize that the bank is still in the initial stages of analyzing and discussing the viability of an investment in Bitcoin.

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As far as Bitcoin’s future is concerned, Michl sees two extreme outcomes – it will either have a huge valuation, or be worth nothing. With this in mind, he labeled Bitcoin as a high-risk asset suitable for investors who understand all the risks of investing in it.

Recently, we covered a report by Bernstein analysts, which suggests that the Bitcoin bull run is poised to enter a new phase fueled by the adoption of large investors such as central banks, sovereign wealth funds, institutional investors and corporations.

We’re already seeing substantial corporate purchases, as MicroStrategy has accumulated almost 480,000 BTC and is looking to raise $2 billion in capital to buy more.

Meme coin controversies boost "Bitcoin, not crypto" sentiment

A potential reason why Michl made sure to differentiate between Bitcoin and crypto assets more broadly is that the crypto sector has taken a reputational hit recently due to the rapid proliferation of meme coins, which are known for their extreme volatility, as well as unethical (and potentially illegal) practices such as rug pulling and insider trading.

Recently, Argentinian president Javier Milei promoted a Solana-based token called LIBRA to his 3.8 million followers on Twitter. The token, which was supposedly meant to support Argentina-based entrepreneurs, saw a rapid price increase and hit a market capitalization of $4.5 billion within the first hour of launching. However, this increase was quickly followed up by an equally violent price crash that resulted in huge losses for the majority of LIBRA holders.

Despite the fact that Milei deleted his post relatively quickly and attempted to distance himself from the project, the damage had already been done and, less than a week after its launch, LIBRA is trading at $0.24, down 94.6% from its $4.5 peak.

The numerous controversies surrounding meme coins have strengthened the narrative of Bitcoin maximalism, which is a position that Bitcoin is the only crypto asset worth investing in.

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