Bitcoin ‘May Have Extrinsic Value In The Sense That People Want It' Says BoE Governor

Andrew Bailey’s concerned about BTC’s use as a means of payment because of its volatile nature.

Bank of England (BoE) Governor Andrew Bailey cautioned over the use of Bitcoin as a means of payment on Monday.

He said he was “very nervous” about people using the leading digital currency for payments because it has uncertain value. Investors should realize that its price is extremely volatile, he said during a BoE question and answer sessions with the public.

He further talked about how the digital currency has little intrinsic value if any. “I have to be honest, it is hard to see that Bitcoin has what we tend to call intrinsic value,” said Bailey.

“It may have extrinsic value in the sense that people want it.”

The intrinsic value of bitcoin remains a central topic of debate amongst bitcoin skeptics and believers.

Read More: BTC Scales Just Fine As A Store Of Value Says MicroStrategy CEO Michael Saylor

Recently, cryptocurrency exchange Kraken in a report dedicated to this subject, talked about how intrinsic value, much like beauty, is in the eyes of the beholder.

“As time passes and bitcoin continues to navigate through uncharted waters, the intrinsic value of bitcoin will also likely change and as a result, so will its market value.”

However, Bailey snubbing Bitcoin isn’t anything new; it has actually been going on for years, even when BTC was at its peak. Just last month, he said, Bitcoin and other crypto-assets have no connection to money, whatsoever, citing its price fluctuation.

“They strike me as fundamentally unsuited to the world of payments where a certainty of value matters,” he had said at that time.

He, however, did feel that stablecoins could offer some useful benefits once consumers could use them with confidence, that is. Fiat-backed cryptos, according to him, can reduce friction in payments by lowering the cost and increasing the speed of payments.

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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