Cryptocurrencies are doing well for themselves over the last few days. While popular currency Bitcoin has been sidelined by meme-based currency Dogecoin due to its surge in percentage terms, the overall cryptocurrencies market seems to be booming.
But it looks like one more red flag has been raised this time by a governor of a central bank.
According to a CNBC report, cryptocurrencies “have no intrinsic value” and people who invest in them should be prepared to lose all their money, stated Bank of England Governor Andrew Bailey.
During a press conference, Bailey said, “They have no intrinsic value. That doesn’t mean to say people don’t put value on them, because they can have extrinsic value. But they have no intrinsic value.”
He warned, “I’m going to say this very bluntly again. Buy them only if you’re prepared to lose all your money.”
When Bailey was chief executive of the Financial Conduct Authority, he made the same statement. He just echoed the same warning he stated in 2017.
Dogecoin hit a new all-time high on Friday at $0.74. It now has a market capitalisation of about $92 billion. In the case of Bitcoin, it is priced at Rs $59,524.91.