According to the latest crypto news update, Andrew Bailey, the governor of the Bank of England, has given a warning to those interested in doing cryptocurrency investments. It came after the freezing of withdrawals unexpectedly by the U.S. crypto lender Celsius. Bailey stated that if anyone is willing to do cryptocurrency investment, then there are possibilities that they might incur a heavy loss of their money, as crypto does not have intrinsic value. Let us know more about this matter.
Why Andrew Bailey has warned investors about crypto investment?
In recent crypto news, the BOE (Bank of England) governor, Andrew Bailey has given his view on the crypto investment. He said investors are risking their money on crypto for which they might incur heavy losses as it does not have intrinsic value. He showed his concern while addressing the British parliament’s Public Accounts Committee on Monday.
He responded to a question on regulators’ duty regarding the protection of consumers and how it can collide with the plan of government for the promotion of financial innovation. Reuters quoted him saying if anyone is interested in doing crypto investment, then simultaneously, he should be mentally prepared to face heavy losses.
According to him, people are interested in it, as they have extrinsic value. He further made a point that usually people value things for their interests. The BOE governor then cautioned by saying that crypto does not have intrinsic value, mentioning another blow-up in a cryptocurrency exchange.
It is not new about the warning given by the British central bank governor currently.
In May, he even mentioned that Bitcoin not being a practical mode of payment. He also meant that cryptocurrency is an easy source for criminal activity. In 2021, he also mentioned that cryptocurrencies are not at all safe. In March, the BOE said the crypto assets present a risk to financial stability.
Ever since the wave of cryptocurrency flagged off since the inception of Bitcoin, it has been under suspicion of traditional banking regarding being used for illegal trafficking like money laundering. But slowly, people started acknowledging the use of cryptocurrency and gained knowledge about its use. Today, it has become a popular topic among crypto enthusiasts all around the world.
Indeed there has been misuse of cryptocurrency, but it is not the only case with it, frauds can be done with fiat money also. All it needs is some precautions like checking the authenticity of the cryptocurrency exchange and ensuring whether it includes security or not. There have been cases of hacking and fraudulent activities wherein, people have lost so much money. But that does not mean you will stop trading on the cryptocurrency exchanges.
Today cryptocurrencies have been accepted by many big companies including Goldman Sachs, JPMorgan, Coca-Cola, BMW, Sotheby’s, Starbucks, and others. Even the big celebrities have come in support of the use of cryptocurrencies. Naming the few popular ones to include Mike Tyson, Floyd Mayweather, Paris Hilton, Amitabh Bacchan, Ashton Kutcher, Snoop Dogg, Kanye West, and others.
There can be differences in the approach toward this new decentralized money technology, but one thing is true, crypto is going to stay for long. The statement made by the BOE governor Andrew Bailey is correct in its way. However, investors should also be careful enough in doing investments and must spend smaller amounts to bear the least losses. Plus, they should be aware of the fact that cryptocurrency is prone to volatility. Prices can anytime swing up or down. At present, there has been a major fall in the prices of most cryptocurrencies which also include the top-rated one Bitcoin.
Quick facts about Andrew Bailey
- Andrew Bailey was born as Andrew John Bailey in 1959 on 30th March.
- He is a British central banker and has been holding the position of BOE governor since 2020 on 16th March.
- Previously, he worked as Chief Cashier of the Bank of England from 2004 to 2011.
- Later from 2013 to 2016, he worked as Deputy Governor of this central bank for Prudential Regulation.
- From 2016 to 2020, he has worked as Cheif Executive of the Financial Conduct Authority.
- Andrew Bailey has studied at Wyggeston Boys’ Grammar School. Later he went to Queens College, Cambridge, and there he earned his bachelor’s degree in History.
- In 1985, he was promoted to MA by seniority, and in 1984, he Ph.D. from the Faculty of History at the University of Cambridge.
So this is what the governor of the Bank of England Andrew Bailey has said regarding cryptocurrency. He has warned investors to be aware of the risks involved in it, or less they might have to face heavy loss of money. Well, he is right up to an extent that cryptocurrency is indeed prone to volatility and hacking risks. But one must not get perturbed by it. All it needs is caution. Log on to Cryptoknowmics to know about Dogecoin price prediction in 2035.