Bank of England governor warns people against investing in Cryptocurrency

Despite the booming crypto market, the sceptics can’t seem to have too much confidence in cryptocurrencies even now. Recent example is the Bank of England governor who has warned people against investing in cryptocurrency even if it is going through one of its best phases and seems extremely lucrative to invest in.

Andrew Bailey is the current governor of Bank of England. While speaking during a conference, he emphasized over the volatility of crypto assets along with the argument which says cryptocurrencies lack any intrinsic values.

” “I would only emphasize what I’ve said quite a few times in recent years, I’m afraid they have no intrinsic value, Bailey said.

Bailey also warned investors that they should only invest in crypto if they are ready to sacrifice that money. The returns may make someone rich but with the high risk factor, one might also end up being bankrupt.

” “I’m sorry, I’m going to say this very bluntly again: Buy them only if you’re prepared to lose all your money.” Bailey added.

In the beginning of the year, The Financial Conduct Authority (FCA) had also issued a warning to the investors which had led to a massive selloff at that time. That selloff due to the panic created by UK’s financial regulator had resulted in a dip in the price of Bitcoin.

Just after touching its then All-time high of $42,000, BTC had dived down below $ 33,000 in a couple of days as a result. However, this warning is not just specifically related to Bitcoin but it can create a similar kind of situation again with Bitcoin being the leader of cryptocurrency market.

The BoE government later also went a little liberal in his stance by saying that Cryptocurrencies can still have extrinsic values.

“Now that doesn’t mean to say people don’t put value on them, because they can have extrinsic value.” , Bailey concluded.

Bailey’s statement has come at a time when the entire cryptocurrency market is soaring. Bitcoin stands at $ 58,000 after touching its All time high of $ 64,000. Ethereum too has crossed its previous all time high and being traded at $ 3500 at the moment.

These digital assets are going on a steady track but the warning has a great potential to derail them.

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