Bank of England: “Only buy crypto coins if you are willing to lose all your money”

Bank of England: “Only buy crypto coins if you are willing to lose all your money”

Andrew Bailey, Governor of the Bank of England, has warned investors of the dangers of crypto coins. “Crypto coins have no intrinsic value. People who want to invest in it must be willing to lose all their money, “he said at a press conference on Thursday.

Why is this important?

Since the autumn of 2020, crypto coins have been on the rise. Central banks worldwide have repeatedly criticized crypto coins. Coins, such as Bitcoin (BTC), are just looking to move away from centralized supervision. Andrew Bailey is not the first central bank governor to warn of the dangers of investing in crypto coins. For example, early this year, Christine Lagarde, president of the European Central Bank, said that Bitcoin is highly speculative. Indonesia Crypto website is popular.

During a press conference on Thursday, Bailey has been critical of the crypto coins. “They have no intrinsic value. That’s not to say people don’t value it, because they can have extrinsic value. But they have no intrinsic value, “he said.

“Lose all your money”

“I’m going to say this very bluntly,” he added. “Only buy them if you are willing to lose all your money.” It is not the first time that Bailey has warned of the dangers of investing in crypto coins. In 2017, as CEO of the Financial Conduct Authority (FCA), he also said that investing in crypto coins can result in the loss of all your capital.

Cryptocurrencies have again gained a lot of ground in recent months. Since the start of 2021, Bitcoin’s value has risen from $ 9,950 to $ 57,500 (at the time of this writing). At its peak, the coin was even worth $ 64,000. Opponents of the currency say it is only a matter of time before the bubble bursts.

Tweets from Musk

Proponents are convinced that crypto coins are a fully-fledged alternative to currencies. For example, Elon Musk has bought 1.5 billion dollars worth of BTC with his company Tesla. Tesla’s quarterly results showed that he made $ 100 million in profit during the first three months of the year by selling Bitcoins. Musk said he wanted to demonstrate that Bitcoin is a serious alternative to cash on the balance sheet. Germany Crypto website is popular.

Musk will be seen this weekend during a Saturday Night Live broadcast. Crypto investors expect him to say something about Dogecoin (DOGE) during that TV appearance. Musk has managed to tweet the joke up several times in recent months. Undoubtedly to be continued.

Ron Gonzalez