- Cryptocurrency Investors Should be Prepared to Lose All Their Money, Bank of England Governor Says
by Ryan Browne@RYAN_BROWNE, https://www.cnbc.com/
* When asked about the rising value of cryptocurrencies, Bank of England Governor Andrew Bailey said: “They have no intrinsic value.”
* “I’m going to say this very bluntly again,” he added. “Buy them only if you’re prepared to lose all your money.”
* The prices of digital currencies from bitcoin to dogecoin have climbed wildly this year.
LONDON — Cryptocurrencies “have no intrinsic value” and people who invest in them should be prepared to lose all their money, Bank of England (BOE) Governor Andrew Bailey said Thursday.
Digital currencies like bitcoin, ether and even dogecoin have been on a tear this year, reminding some investors of the 2017 crypto bubble in which bitcoin blasted toward $20,000, only to sink as low as $3,122 a year later.
Asked at a press conference about the rising value of cryptocurrencies on Thursday, Bailey said: “They have no intrinsic value. 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.”
“I’m going to say this very bluntly again,” he added. “Buy them only if you’re prepared to lose all your money.” Bailey’s comments echoed a similar warning from the U.K.’s Financial Conduct Authority (FCA).