Despite witnessing significant growth, government officials across the globe continue to diss the crypto industry. Bank of England’s governor, Andrew Bailey was the latest to join this list.
While several governments have been trying to regulate the crypto industry, a few others were spreading fear amongst people by emphasizing the losses that one might endure due to investments in crypto. Even though the crypto-verse is volatile, institutional investors continue to pour money into the industry. However, the bank’s governor Bailey stressed the lack of intrinsic value that the crypto industry entailed.
Bank of England’s governor: “they have no intrinsic value”
Speaking at a recent conference, Bailey highlighted his stance on how people could lose it all if they continued to invest in crypto. The bank’s governor has been quite vocal about his disinterest in crypto. This time, he went on to suggest that cryptocurrencies had no intrinsic value.
He stated,
“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. I’m going to say this very bluntly again. Buy them only if you’re prepared to lose all your money.”
Bailey’s remarks seemed to have come right after the market cap as well the price of several cryptocurrencies were seen hitting new highs. At the time of writing, the overall market cap of the crypto industry was noted mounting to a high of $2.44 trillion. Additionally, the price of Bitcoin [BTC] was seen recovering from its recent downfall.
While Bailey outrightly suggested that people would lose their money if they invested in crypto, Elon Musk, the CEO of Tesla and a crypto lover recently advised people to cautiously invest in crypto. He went on to tweet,
“Cryptocurrency is promising, but please invest with caution!”
Previously, the tech billionaire had also urged people to refrain from investing all their life savings in crypto.