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| Cryptocurrencies have no intrinsic value |
Andrew Bailey, Chairman of the Bank of England, said: Cryptocurrencies have no intrinsic value and those who invest in cryptocurrencies should be prepared to lose all of their money.
This year, news of cryptocurrencies like Bitcoin and Ethereum has appeared in droves.
That wave reminded some investors of the crypto bubble of 2017, when bitcoin rose to around $ 20,000 and down to $ 3,122 a year later.
Speaking at a press conference about the increasing value of cryptocurrencies, Bailey said: It has no intrinsic value, adding, if you are prepared to lose all your money please buy it.
Paley's comments confirmed similar warnings from Britain's Financial Conduct Authority.
The Financial Services Monitor said in January, “Investing in crypto assets generally carries a high degree of risk to investors’ money. When consumers invest in these types of products, they should be prepared to lose all of their money. ”
Billy, the former CEO of the Financial Conduct Authority (FCA), has long been skeptical of cryptocurrencies and issued a warning in 2017: If you want to invest in Bitcoin, be prepared to lose all of your money.
Bitcoin has grown over 90% so far this year, in part due to increased interest from institutional investors and buyers of companies like Tesla.
The electric car company bought Bitcoin for $ 1.5 billion earlier this year and grew its holdings to nearly $ 2.5 billion.
Due to a lack of supply, Bitcoin proponents see it as a store of value similar to gold, with only 21 million Bitcoins to be extracted.
Proponents of the currency say: It is a hedge against inflation as central banks around the world print money to reduce the economic impact of the Coronavirus.
Skeptics, however, see bitcoin as a bubble waiting to burst.
Meanwhile, the returns from alternative cryptocurrencies exceed those of Bitcoin. Ethereum is back over 360% since the start of the year, while Dogecoin's revenue is up 12,500%.
Analysts attribute the rise of Dogecoin to the tweets of celebrities and individual investors such as Elon Musk and Mark Cuban.