The next Bank of England governor, Andrew Bailey is yet another one in the line of bitcoin skeptics. According to him, crypto assets have no intrinsic value.
Despite the growth bitcoin price and the network saw in the past eleven years, the skeptics remain doubtful of the world’s leading cryptocurrency that has a market capitalization of over $164 billion.
Last month, billionaire investor and long time bitcoin critic Warren Buffett said cryptocurrencies are worth zero because they don’t produce anything.
Now, Bailey is warning people against investing in the digital asset because then you risk losing all of your money.
“If you want to buy bitcoin, be prepared to lose all your money. If you want to buy it, do it. But understand that it has no intrinsic value,” said Bailey during his meeting with the Treasury Committee of parliament on Wednesday.
Well, it’s funny given that bitcoin is the best performing asset of the last decade that recorded an eye-popping 9 million percent of gains.
Well, looks like, “he bought the top in December 2017, panic sold in December 2018,” jokes economist and trader Alex Kruger on Baily’s salty comments which aren’t much different from the “serious warning” he gave during the bull run of 2017 when BTC hit its all-time high at $20,000.
As for having no intrinsic value, what about fiat currency. Ever since the fiat lost its gold standard, it didn’t have any intrinsic value either but is all about people’s faith in the money just like bitcoin proponents say people have in bitcoin.
The Chief of Financial Conduct Authority (FCA) is the next governor of BoE who will replace Mark Carney this month. And the upcoming governor believes bitcoin “has not caught on much.”
Well, given that big institutions have been entering the market and building products around them, it certainly has a lot going on for it. The digital asset will also become even more scarce than gold on its coming halving event and is working towards becoming a store of value.
“My investment case for Bitcoin shows the exact opposite. Bitcoin did catch up despite heavy headwinds,” argued Gabor Gurbacs, digital asset director at VanEck.