batmannow
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But they never say a word, when poor ppls lose everything on decade old fraud called stock markets?KEY POINTS
- When asked about the rising value of cryptocurrencies, Bank of England Governor Andrew Bailey said: “They have no intrinsic value.”
- “I’m going to say this very bluntly again,” he added. “Buy them only if you’re prepared to lose all your money.”
- The prices of digital currencies from bitcoin to dogecoin have climbed wildly this year.
Bank of England Governor Andrew Bailey.
Simon Dawson | Bloomberg via Getty Images
LONDON — Cryptocurrencies “have no intrinsic value” and people who invest in them should be prepared to lose all their money, Bank of England Governor Andrew Bailey said.
Digital currencies like bitcoin, ether and even dogecoin have been on a tear this year, reminding some investors of the 2017 crypto bubble in which bitcoin blasted toward $20,000, only to sink as low as $3,122 a year later.
Asked at a press conference Thursday about the rising value of cryptocurrencies, Bailey said: “They have no intrinsic value. That doesn’t mean to say people don’t put value on them, because they can have extrinsic value. But they have no intrinsic value.”
“I’m going to say this very bluntly again,” he added. “Buy them only if you’re prepared to lose all your money.”
Bailey’s comments echoed a similar warning from the U.K.’s Financial Conduct Authority.
“Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money,” the financial services watchdog said in January.
“If consumers invest in these types of product, they should be prepared to lose all their money.”
Bailey, who was formerly the chief executive of the FCA, has long been a skeptic of crypto. In 2017, he warned: “If you want to invest in bitcoin, be prepared to lose all your money.”
Bitcoin is up over 90% this year, thanks in part to rising interest from institutional investors and corporate buyers such as Tesla. The electric car firm bought $1.5 billion worth of bitcoin earlier this year, and the value of its holdings have since risen to nearly $2.5 billion.
Proponents of bitcoin see it as a store of value akin to gold because of its scarce supply — only 21 million bitcoins can ever be minted — arguing that the cryptocurrency can act as a hedge against inflation as central banks around the world print money to relieve coronavirus-battered economies.
However, skeptics view bitcoin as a market bubble waiting to burst. Michael Hartnett, chief investment strategist at Bank of America Securities, said bitcoin’s rally looks like the “mother of all bubbles,” while Alvine Capital’s Stephen Isaacs said there are “no fundamentals with this product, period.”
Alternative digital currencies have made even larger gains than bitcoin. Ether, the native token of the Ethereum blockchain, has seen returns of more than 360% year to date, while meme-inspired crypto dogecoin is up a whopping 12,500%.
Analysts have attributed dogecoin’s rise to tweets from celebrities like Tesla’s Elon Musk and Mark Cuban, as well as retail investors buying the token on the free-trading app Robinhood. David Kimberley, an analyst at U.K. investing app Freetrade, described the dogecoin rally as “a classic example of greater fool theory at play,” referring to the practice of selling overvalued assets to investors who are willing to pay a higher price.
At the same time, central banks are considering whether to issue their own digital currencies. Last month, the Bank of England launched a joint taskforce with the Treasury aimed at exploring central bank digital currencies, or CBDCs. Such a currency would exist alongside cash and bank deposits rather than replacing them, the bank said.
Cryptocurrency investors should be prepared to lose all their money, Bank of England governor says
When asked about the rising value of cryptocurrencies, Bank of England Governor Andrew Bailey said: "They have no intrinsic value."www.cnbc.com
Cryptos has let thier fraudulent control over ppls MOney very weak but they can't have any substance evidence against cryptos that it's a fraud or is illegal by any means?
All what they can do is to fuss against it making fake warnings like this one so, old age group ppls doesn't go invest in crypto ?
Bigger and better then musks tried and failed with the time musks will also learn his lessons !I dont think anything will be able to replace gold unless they can make something synthetic in a lab
Etherium and Bitcoin both are dancing to Musks tunes so better choose something else
Btc is here to stay and to eat all the fraudly printed money on which that fake illegal betting financial system is based upon ?
, BTC will again test $40k or else it will be hovering around $32K - $36K.
