Bitcoin is Not a Reliable Method of Payment says Bank of England

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Bank of England warns of Bitcoin
Bank of England warns of Bitcoin

Andrew Bailey the Governor of the Bank of England has raised a warning about the future of cryptocurrencies. In comments made on Monday, Bailey said that Bitcoin and other currencies can’t be a trustworthy method of payment due to their high volatility. 

“They fluctuate in value substantially,” he said during a virtual conference, reported by Bloomberg. “Which is why they’re, on the whole, not a good medium for making payments?”

Bailey’s comments came few days after El Salvador voted for allowing Bitcoin as a legal tender alongside the U.S. dollar. The Central American country is the first country ever to adopt digital tokens as a payment method.

“Given the volatility of the asset value, and given the fact that there isn’t a real asset underpinning them, I’m afraid if you want to buy them then please understand that you can lose, you could lose all your money,” Bailey said.

Musk’s Tesla moves Bitcoin price up again

On Monday, Bitcoin blasted above $40,000 after the 2nd richest person in the world Elon Musk said that Tesla might re-accept Bitcoin as a payment method again. However, Musk made it clear that mining should start using cleaner energy before his company allows clients to buy electric cars in Bitcoin.