"Cryptocurrencies are a typical bubble, which is always based on some kind of misunderstanding. Bitcoin is not a currency, because a currency is supposed to be a stable store of value, and the currency that can fluctuate 25 percent in day cannot be used, for instance, to pay wages, because wages could drop by 25 percent in a day. So it's a speculation, it's based on misunderstanding," Soros said in Davos, Switzerland.
The value of bitcoin, a pioneer in the cryptocurrencies market, surged in 2017, jumping up to about $20,000 in December amid debates on its reliability as an investment, but then tumbled below $10,000 last week.
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Recently, Venezuela launched its own state cryptocurrency, which, as the country's president Nicolas Maduro says, is backed by oil. Also, the Bank of England could give approval on the introduction of a national cryptocurrency in 2018. The body reportedly established a special research unit years ago, in order to study the issue of introduction of a pound-linked cryptocurrency.
