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Price of bitcoin could go higher or ‘can go to zero,’ says Czech central bank governor
TL;DR
Czech central bank governor Alex Michl stated that bitcoin's price could either rise significantly or drop to zero, highlighting its volatility as a major risk for financial institutions. He emphasized the importance of diversifying assets to mitigate potential losses.
Key points
- Czech central bank governor Alex Michl speaks at Bitcoin 2026 conference
- Bitcoin's volatility poses a significant risk for financial institutions
- Michl emphasizes the need for asset diversification
Mentioned in this story
Alex MichlLas Vegas
The Czech Republic’s central bank governor, Alex Michl, said that adding bitcoin BTC$77,420.00 to the financial institution’s reserves could improve performance, but warned its volatility is much higher than other assets and therefore represents a risk.
“Its volatility is much higher than other assets,” Michl said in a speech at the Bitcoin 2026 conference in Las Vegas on Tuesday. “One day its price may be much higher or it could go to zero. Yes, zero”.
Michl acknowledged that all assets face the risk of losing their entire value, which is why banks have portfolios. “A stock can go to zero. Even a bond can fail. So for me that is why it is not wise to bet just on one asset.”
“The first time I used bitcoin, I bought a coffee. Today. that coffee comes to about $350, so it was the most expensive coffee of my life.”
However, he insisted that while bitcoin through time shows “very high returns, but honestly it looks too risky.”
The Czech National Bank became the first central bank worldwide to purchase bitcoin in November as it announced the creation of a $1 million test portfolio that includes BTC, a USD stablecoin, and a tokenized deposit. Approved by the CNB’s bank a month prior, the pilot was aimed at acquiring hands-on experience with blockchain-based assets, which it said could redefine how the country’s payments and financial systems operate in the future.
A CNB study, he said, found that because bitcoin has low long-term correlation with many traditional assets, it does not move in the same direction and that is important.
“When you add an asset like this, the whole portfolio can work better. Return can go up and risk stays about the same,” he explained, adding that over the long term, “bitcoin can provide returns that are not closely linked to other assets. In some ways it is similar for me to venture capital but it is much more liquid.”
However, despite finding that bitcoin has the potential to drive higher returns with smaller allocations even more so than gold, “the CNB's Bank Board decided not to invest its FX reserves in bitcoin at this time,” the study dated February 2026 states.
Q&A
What did Czech central bank governor Alex Michl say about bitcoin's volatility?
Alex Michl warned that bitcoin's volatility is much higher than other assets, indicating it could either rise significantly or drop to zero.
Why does Michl believe banks should diversify their assets?
Michl believes that all assets, including stocks and bonds, can lose their entire value, which is why it's unwise to rely solely on one asset like bitcoin.
What was Michl's personal experience with bitcoin?
Michl shared that his first purchase with bitcoin was a coffee that now costs about $350, illustrating the drastic price changes of the cryptocurrency.
