Investors flocking into Bitcoin (EXANTE: Bitcoin) are taking a risk by buying at such high prices, the vice president of the European Central Bank (ECB) Vitor Constancio told CNBC.
"It's a very particular asset, it's a speculative asset by definition looking to the developments in its price. Investors are taking that risk of buying at such high prices," Constancio noted.
Constancio said the price of Bitcoin is likely to fluctuate more, but this is not set to hurt other markets in any way.
"Certainly I don't think it would spread to other markets," he said.
When asked when central banks will take cryptocurrencies seriously, he said:
"We don't have to, in the sense that we don't have responsibility or even instruments that point to particular prices of particular assets, that is certainly not the role of central banks."
In just over the last year Bitcoin has gone from under $1,000 to passing the $10,000 marker. Earlier in the week, the global cryptocurrency market broke through the $300 billion milestone.
Former Fortress hedge fund manager Michael Novogratz, who predicted Bitcoin's rise to $10,000, sees the possibility of it reaching $40,000 by the end of next year.