Why has the Bank of England warned cryptocurrency investors?

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Last update: 7 – May – 2021 6:10 PM

Bank of England Governor Andrew Bailey has warned that cryptocurrencies have “no intrinsic value”, and the people who invest in them should be prepared to lose all of their money.

In response to a question at a press conference about the rise in the value of cryptocurrencies on Thursday, Bailey said: “These currencies have no intrinsic value. This is not to say that people do not place value on them, because they can have an external value, but they do not have any intrinsic value. “.

He added, “I will say this very frankly again … Buy these currencies only if you are willing to lose all of your money.”

Pelly’s comments came after similar warnings from the British Financial Discipline Authority last January, in which it said: “Investing in crypto assets, or investments and associated lending, all generally involve taking a very high risk with investors’ money … and if investors insist. If they invest in these types of financial products, they need to be prepared to lose all of their money. ”

Bitcoin has risen by more than 90% so far since the beginning of this year, partly due to the increased interest from founding investors and buyers from companies such as Tesla, the American electric cars that bought Bitcoins worth $ 1.5 billion, raising the value of their holdings to nearly $ 2.5 billion, according to “Erm News”.







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