Andrew Bailey, governor of the Bank of England warns of dangers in cryptocurrencies

Andrew Bailey governor of the Bank of England warns of dangers in cryptocurrencies

Crypto investors has been warned of the dangers of participating in the market, by Andrew Bailey, governor of the Bank of England

Bailey balked at the notion of “cryptocurrencies,” stating that “crypto assets” was a more suitable nomenclature for describing digital currencies, in a conference on Thursday.

Anti-crypto rhetoric, specifically the argument that cryptocurrencies lacked intrinsic value, was adumbrated by Bailey, he said he will still reirtrate what he has said few years ago and still maintain his position that there is no intrinsic value of cryptocurrencies.

As a warning to crypto investors, bailey said he will be blunt and that crypto investors should only buy them if they are prepared to lose their money.

Statements issued by the United Kingdom’s Financial Conduct Authority. As previously reported by Cointelegraph, the FCA warned the British public of the risk of incurring huge losses from crypto investments back in January, is similar to Bailey’s remarks.

As Bitcoin (BTC) dipped below $33,000 the crypto market was in the throes of a significant correction, as at the time the warning was made by United Kingdom’s Financial Conduct Authority. Total of crypto market capitalization has grown almost three-fold and is currently above $2.3 trillion, since the warning.

Bailey’s comments are coming amid a massive spike in crypto prices, especially for altcoins, with Ether (ETH) setting a new all-time high. Major altcoins such as Polkadot’s DOT, Chainlink’s LINK and XRP have also seen vertical price actions.

The BoE governor touched on the current mania despite the apparent lack of intrinsic value, adding: “Now that doesn’t mean to say people don’t put value on them, because they can have extrinsic value.”

Indeed, Dogecoin (DOGE), arguably the quintessential “meme coin,” is up more than 12,700% year-to-date.

While the BoE governor might not think much of the value proposition of crypto, the country’s tax authority is not neglecting the possibility of valuable digital currencies being used to evade taxes.

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