Andrew Bailey has just issued a warning to everyone who owns Bitcoin.
The Governor-in-Office of the Bank of England, who begins his term on March 16, 2020 and who was Vice-Governor of the bank from April 2013 to July 2016, took a firm stand against Bitcoin (BTC) in a new speech Wednesday in front of the United Kingdom. Parliament.
Bailey echoes other outspoken critics of crypto like legendary investor Warren Buffett, economist Nouriel Roubini and gold supporter Peter Schiff who warned investors against owning Bitcoin. Bailey initially likened the purchase of Bitcoin to gambling in an interview with BBC Newsnight in December 2017, calling it “a very volatile product in terms of price”.
Now the central banker doubles his skepticism about digital assets, claiming that it has no intrinsic value.
“There is no guarantee of the value of Bitcoin … If you want to buy Bitcoin, be prepared to lose all your money. If you want to buy it, fine, but understand what you have. “has no intrinsic value. It may have extrinsic value but it has no intrinsic value. It’s a point. It didn’t take.”
BREAK: Bank of England Governor-General Andrew Bailey says those who hold bitcoin should “be prepared to lose all your money” and “bitcoin hasn’t taken much”
ok banker pic.twitter.com/eu4bolovWf
– Blockfolio (@blockfolio) March 4, 2020
His remarks follow a recent report from the Bank for International Settlements (BIS) that analyzes the impact that virtual currencies, including Bitcoin, can have on the world of finance.
According to the report, the technology behind cryptocurrency is revolutionary, and central banks are “increasingly exploring the desirability and feasibility of establishing their own peer-to-peer systems through digital currencies.”
“The most transformative option to improve payments is a peer-to-peer agreement that directly links payers and recipients and minimizes the number of intermediaries. Many peer-to-peer agreements use distributed ledger (DLT) technology.
While account-based systems record transactions in a central ledger, DLT systems record transactions in multiple locations at the same time, resulting in a decentralized and synchronized ledger. Examples that have attracted attention in recent years include Bitcoin and so-called “stable” initiatives like Libra. “
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