• May 07, 2021

The governor of the Bank of England has warned cryptocurrency investors that they should expect to lose all of their capital.

On May 7, Bank of England Governor Andrew Bailey said that cryptocurrencies "have no inherent value" and that those who invest in them should expect to lose their entire investment.

"They don't have any inherent worth. That isn't to suggest that people don't place value on them; they can have both intrinsic and extrinsic value. They, on the other hand, have no intrinsic value "At a press conference, Bailey was asked about the rising value of cryptocurrencies.

"I'm going to say it again, really frankly. Just buy them if you're willing to risk all of your money " he added.

The meteoric rise of cryptocurrencies in 2021 has reignited talk of a cryptocurrency bubble, similar to the one that erupted in 2017, when bitcoin soared to $20,000 before plummeting to $3,122 a year later.

However, supporters of cryptocurrency argue that the world has changed dramatically since 2017, and that institutional support can only help legitimise cryptocurrencies throughout the future.

JPMorgan Chase recently reported that it may sell bitcoin to its high-net-worth clients. According to media reports, the actively operated bitcoin fund may be launched this summer (June-August).

Morgan Stanley's investment arm was said to be evaluating whether bitcoin was a viable choice for investors earlier in February.

It followed Tesla's acceptance of bitcoin as a form of payment. The electric carmaker has made a $1.5 billion bitcoin investment. Tesla sold 10% of its bitcoin assets on April 26 in order to demonstrate cryptocurrency's liquidity as a cash substitute.

Furthermore, Elon Musk, the company's eccentric CEO, has been a vocal supporter of dogecoin on social media, and has single-handedly helped the parody cryptocurrency surpass the $80-billion mark, making it more valuable than most Indian firms, with the exception of Reliance Industries, TCS, and HDFC Bank.

Disclaimer: The material on this website about cryptocurrency is not meant to be investment, financial, trading, or other forms of advice, and you should not take any of it as such.