Bank of England Governor Andrew Bailey has warned cryptocurrency traders about losing all of their money if they decide to invest in Bitcoin and other altcoins. Bailey said that cryptocurrencies “have no intrinsic value” and crypto traders should be ready to lose all their investment.
Cryptocurrencies such as Bitcoin, Ether, and Binance have been breaking all-time high records in the last 12 months. However, Mr. Bailey reminded investors of the 2017 crypto bubble when Bitcoin plummeted from $20,000 to $3,122 in less than a year.
Bailey was asked in a press conference Thursday about the price increase of digital currency when he said that “They have no intrinsic value. That doesn’t mean to say people don’t put a 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 were consequential with the warning from the United Kingdom’s Financial Conduct Authority.