BoE Governor Andrew Bailey Sounds Alarm on Bitcoin Investments

Friday, 07/05/2021 | 17:01 GMT by Arnab Shome
  • ‘Buy them [Bitcoin] only if you’re prepared to lose all your money,” Bailey said.
BoE Governor Andrew Bailey Sounds Alarm on Bitcoin Investments
FM

The popularity of Bitcoin exploded in recent years as top company chiefs and many economists have started to see long-term value in it. But, a section of traditional finance experts is still skeptical. The Bank of England Governor, Andrew Bailey, recently criticized Cryptocurrencies , saying they lack intrinsic value.

“They have no intrinsic value,” Bailey said at a press conference Thursday. “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.”

Additionally, he went on to warn Bitcoin investors that they should be prepared to lose their money.

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

Bailey has been a long-time critic of Bitcoin. And his recent comments were similar to his previous warnings in 2017, when retail demand pumped Bitcoin to $20,000, only to see a crash to prices as low as $3,200.

His recent comments came when the crypto market is soaring, but this time with interests from institutional investors as well. Though Bitcoin and Ethereum have the trusts of expert investors, the recent rise of Dogecoin prices has rung alarm bells.

Regulators Don't Like the Rally

Earlier, the United Kingdom’s Financial Conduct Authority, which oversees the country’s financial markets, pointed out risks with cryptocurrency investments.

“Investing in crypto assets, or investments and lending linked to them, generally involves taking very high risks with investors’ money,” the FCA stated. “If consumers invest in these types of products, they should be prepared to lose all their money.”

Recently, an American investor and billionaire, Charlie Munger, trashed Bitcoin, calling it ‘disgusting’.

“I hate the Bitcoin success,” he said. “I don’t welcome a currency that’s so useful to kidnappers and extortionists and so forth, nor do I like just shuffling out of your extra billions of billions of dollars to somebody who just invented a new financial product out of thin air.”

The popularity of Bitcoin exploded in recent years as top company chiefs and many economists have started to see long-term value in it. But, a section of traditional finance experts is still skeptical. The Bank of England Governor, Andrew Bailey, recently criticized Cryptocurrencies , saying they lack intrinsic value.

“They have no intrinsic value,” Bailey said at a press conference Thursday. “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.”

Additionally, he went on to warn Bitcoin investors that they should be prepared to lose their money.

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

Bailey has been a long-time critic of Bitcoin. And his recent comments were similar to his previous warnings in 2017, when retail demand pumped Bitcoin to $20,000, only to see a crash to prices as low as $3,200.

His recent comments came when the crypto market is soaring, but this time with interests from institutional investors as well. Though Bitcoin and Ethereum have the trusts of expert investors, the recent rise of Dogecoin prices has rung alarm bells.

Regulators Don't Like the Rally

Earlier, the United Kingdom’s Financial Conduct Authority, which oversees the country’s financial markets, pointed out risks with cryptocurrency investments.

“Investing in crypto assets, or investments and lending linked to them, generally involves taking very high risks with investors’ money,” the FCA stated. “If consumers invest in these types of products, they should be prepared to lose all their money.”

Recently, an American investor and billionaire, Charlie Munger, trashed Bitcoin, calling it ‘disgusting’.

“I hate the Bitcoin success,” he said. “I don’t welcome a currency that’s so useful to kidnappers and extortionists and so forth, nor do I like just shuffling out of your extra billions of billions of dollars to somebody who just invented a new financial product out of thin air.”

About the Author: Arnab Shome
Arnab Shome
  • 6654 Articles
  • 102 Followers
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.

More from the Author

CryptoCurrency