Cryptocurrency has ‘no intrinsic value,’ and investors will ‘lose all your money.
Cryptocurrencies “have no intrinsic value,” and people; Also, who invest in them, need to be attentive to lose all their money. Above all, Bank of England Governor Andrew Bailey said.
Cryptocurrency investors are on alert.
The Governor of the Bank of England said cryptocurrencies have “no intrinsic value” and people who invest in them should be “prepared to lose everything. [their] money “.
Andrew Bailey, who has controlled the bank since March 2020, made the comments at a press conference where he was asked about the future of cryptocurrency.
“They have no intrinsic value. That’s not to say that people don’t value them, because they can have extrinsic value. But they don’t have any intrinsic value, ”Bailey said.
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“I’m going to repeat it quite frankly,” he continued, “only buy them if you’re willing to waste all your money.”
Mr. Bailey’s comments come as Dogecoin. A cryptocurrency inspired by the Japanese dog breed Shiba Inu has grown more than 100 times faster than Bitcoin. In contrast, another Etherium cryptocurrency recently hit record highs records.
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Many of these cryptocurrencies got promotion by celebrities, including SpaceX and Tesla CEO Elon Musk. Mr. Musk’s controversial tweets regularly push the cryptocurrency price higher. He shares memes about the asset ahead of his appearance as a “dogefather” on the Saturday Night Live sketch show.
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However, the Bank of England does not appear to be totally against cryptocurrencies. Along with the Treasury, he’s apparently working to assess the benefits of a central digital currency. It might be commonly referred to as ‘Britcoin.’ By the end of the decade.
In a word, only one in 10 payments in the country is expected to transact with traditional paper or metal money.
“Our vision is of a more open, greener, and more technologically advanced financial services industry,” Chancellor Rishi Sunak said at the time.
“If we can harness the extraordinary potential of the technology, we will solidify the UK’s position as the world’s leading financial center. “
The Bottom Line
The Bank of England also met in January 2021 with the central banks of Japan, Sweden, Switzerland, and the euro area to discuss the economic benefits of digital currencies. Cryptocurrency industry players believe this indicates that regulators see potential bargains from digital coins.
Following the central bank’s interest rate decision on Thursday. Andrew Bailey told journalists that he thinks cryptocurrencies such as bitcoin have no value in their own right. “I would only emphasize what I’ve said quite a few times in recent years. I’m afraid they have no intrinsic value,” he said.