Bank of England Governor Andrew Bailey has explained his views that crypto ‘have no intrinsic value’. Also, crypto holders have to be prepared to lose all their money.
At a press conference on Thursday Bailey adds,
’’They have no intrinsic value. That doesn’t mean to say people don’t put a value on them, because they can have extrinsic value. But they have no intrinsic value.”
Bailey is not new to criticism, because he has been repeating nearly the same statement since December 2017, before he became the Governor of the UK’s central bank. At that time, Bailey desperately warned crypto investors “if you want to invest in bitcoin be prepared to lose your money”.
Bitcoin’s Rising Value
Bitcoin experienced an astronomical boom in late 2017. However, it surged around $25,000 per coin and attracted thousands of new investors before plummeting to under $3000 a year later.
In March 2020, Bailey, emphasized that bitcoin has not caught on much on his familiar comments on the bitcoin’s lack of intrinsic value and possibility for investor to lose all their money.
Bailey’s response came after a statement whether recent volatility in crypto worries Bank of England.
Bank of England announced the launch of taskforce to research opportunities and risk of central bank digital currency last month. Added to this, Bailey created a digital joke in 2013 by giving comments on the red hot rally in dogecoin.
Meanwhile, meme-based virtual currency Dogecoin soared to an all-time high this week, extending to 2021 it will become the fourth-biggest digital coin.
Bitcoin is up over 90% this year. This percentage of surge is due to, rising interest from investors and corporate buyers such as Tesla, the electric car firm. More so Tesla bought $1.5 billion worth of bitcoin earlier this year, and the value of holding has since to nearly $2.5 billion. At press time Bailey made comments about Bitcoin trading $58,300, up 555% last year.
