Bitcoin investors may lose everything, European Central Bank warns

Bitcoin investors need to be prepared to “lose all their money,� European Central Bank governing council member Gabriel Makhlouf said, the latest warning from a central banker on the cryptocurrency.

“Personally, I’m not sure why people invest in those sorts of assets, but they see them as assets clearly,� Makhlouf, who is also governor of Ireland’s central bank, told Bloomberg TV on Friday. “Our role is to make sure that consumers are protected.�

Makhlouf’s comments echo skepticism from ECB leaders. The cryptocurrency is a “highly speculative asset,� President Christine Lagarde said this month. Bitcoin prices have more than doubled since November and topped $40,000 earlier this month. Large movements in its value are common, with four daily swings of more than 5% in the past nine days.

On Friday, Bitcoin rallied above $35,000, with brokers attributing the move to Elon Musk mentioning the cryptocurrency in his bio page on Twitter.

Bitcoin Jumps Above $35,000 as Musk Puts It Into Twitter Profile

Still, Makhlouf doesn’t see “financial stability issues at the moment arising from Bitcoin itself.�

“I worry more about about consumers making the right choices,� he said.