Bitcoin investors could learn a valuable lesson from the Dutch tulip bulb mania of the 1630s, according to a global banking regulator.
When asked whether cryptocurrencies, such as bitcoin, had ignited any financial stability concerns, Stefan Ingves, chairman of global regulators at the Basel Committee and governor of Sweden's Riksbank, told CNBC: "I think it's wrong to call it a cryptocurrency, it's crypto-something … Kind of a crypto-asset but definitely not a cryptocurrency."
Ingves said investing in bitcoin — as well as other similar instruments — was a "dangerous" prospect. He urged traders to be cautious because of strikingly high volatility levels and the clear lack of support from either central banks or international regulators.
Bitcoin was trading at around $16,029 on Friday morning, according to industry site CoinDesk, after wild price swings in recent days. The digital currency rocketed above $19,000 on Thursday on the Coinbase exchange, before notching a huge decrease.
The price on Coinbase, one of the major cryptocurrency exchanges accounting for a third of bitcoin trading volume, is often at a premium over other platforms.
"If you look at what has happened in the past when it comes to reaching those type of heights, being it tulip bulbs or a bunch of other things over the centuries, the odds are against those who actually think that this is going to be the future," Ingves said.