- Bitcoin has “no intrinsic value” – says BoE’s Andrew Bailey
- Bailey warns bitcoin investors to be prepared to lose all of their money
No matter the growth bitcoin network and bitcoin price see, the skeptics will remain doubtful of the world’s leading cryptocurrency. Some, like billionaire investor Warren Buffett, believes cryptos are worth zero because they don’t produce anything while others believe it’s a bubble ready to burst.
The Bank of England governor, Andrew Bailey is yet another bitcoin skeptic who says crypto-assets don’t have any intrinsic value.
In a meeting with the Treasury Committee of parliament on Wednesday, Bailey warned crypto investors to be prepared to lose all their money. Bailey said in a tweet,
BREAKING: The Bank of England governor-designate, Andrew Bailey, says those holding bitcoin should "be prepared to lose all of your money" and "bitcoin has not caught on much"
ok banker pic.twitter.com/eu4bolovWf
— Blockfolio (@blockfolio) March 4, 2020
Given that bitcoin has been the best performing asset of the last decade, recording 9 million percent of gains, losing all your money seems too salty. As economist and trader Alex Kruger jokes, “he bought the top in December 2017, panic sold in December 2018.” Back in the 2017 bull run, Bailey gave investors a similar “serious warning.”
Bitcoin might have lost 84% of its value during the crypto winter of 2018 but it is back on the track to a new high as BTC trades above $9,000.
As for having no intrinsic value, bitcoin proponents have repeatedly argued that the crypto asset is just like fiat currency that doesn’t have any intrinsic value either and relies on people’s faith in them.
Leaving under the Rock
The Chief of Financial Conduct Authority (FCA) is in line to replace current governor Mark Carney this month. Working as a delegate governor, Bailey believes bitcoin “has not caught on much.”
Looks like, he doesn’t pay any attention to the market development at all, rather keeps to his bias. In the past 11 years, the cryptocurrency has grown to a market capitalization of $160 billion.
The number of crypto-related ATMs has grown to over 7,000 while institutions keep on entering the market and introducing new products. Gabor Gurbacs, digital asset strategist/director at VanEck/MVIS argues in a tweet,
— Gabor Gurbacs (@gaborgurbacs) March 4, 2020