Bank of England Warns Bitcoin and Crypto Investors about Losing All of Their Money

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 “Investing in crypto assets, or investments and lending linked to them, generally involves taking very high risks with investors’ money,” the financial services watchdog said in January.

Bitcoin surges by 90% while Dogecoin gains %13,000 in a year

Bitcoin soared 90% this year alone. This followed the institutional adoption of the cryptocurrency as well as heavy investments like Tesla’s (NASDAQ: TSLA). The electric car manufacturer invested $1.5 billion in Bitcoin. Since that deal, the value of Tesla’s holdings have blasted above $2.4 billion. 

On one hand, Bitcoin enthusiasts argue that the scarcity of Bitcoin supply is what makes it so valuable. Additionally, several traders believe that Bitcoin can be a hedge against inflation. Especially that central banks around the globe are racing to print money due to the Covid-19 economic damage.

On the other hand, watchdogs and skeptics such as Warren Buffett believe that Bitcoin is of no value and that a market bubble will soon burst. For instance, Michael Hartnett, chief investment strategist at Bank of America Securities said that the rally of Bitcoin is like the “mother of all bubbles,” while Alvine Capital’s Stephen Isaacs said there are “no fundamentals with this product, period.”