Bank of England Governor Andrew Bailey opined that cryptocurrencies “have no intrinsic value,” and people who invest in them should be prepared to lose all their money. When asked at a press conference about the rising value of cryptocurrencies on Thursday, the BoE governor said: “They have no intrinsic value. That doesn’t mean to say people don’t value them because they can have extrinsic value. But they have no intrinsic value.”
Cryptocurrencies witness a massive surge this year.
Cryptocurrencies like bitcoin, ether and even dogecoin have witnessed a massive rally this year, reminding some investors of the 2017 crypto bubble in which bitcoin blasted toward US$20,000, only to sink as low as US$3,122 a year later. However, this time around, the price of the leading cryptocurrency surged as high as $64,000 earlier this month. Altcoins also witnessed a massive rally. The winning rally has not set well with regulators across countries as crypto cynics continue to warn against the volatility of these digital currencies. The Bank of England’s governor added, “I’m going to say this very bluntly again: buy them only if you’re prepared to lose all your money.”
Regulators continue to warn against cryptocurrencies.
Earlier, the U.K.’s financial regulator, Financial Conduct Authority, warned Tuesday that thrill-seeking young investors are taking on large financial risks, despite most admitting that significant losses could fundamentally impact their lives. According to the financial regulator, “new, younger, more diverse group of consumers getting involved in higher-risk investments, potentially prompted in part by the accessibility offered by new investment apps.” The rise in crypto prices has forced regulators around the world to take decisive steps to regulate the industry. The entire market cap of cryptocurrencies had earlier reached above $2 trillion for the first time.