The Central Bank of England has warned traders and investors about the potentially dangerous risks of investing in cryptocurrencies.
The Governor of the Bank, Mr. Andrew Baily, said that investors should be careful about the dangers associate with getting involved in the crypto market. Addressing a press conference on Thursday, Mr. Andrew showed concern about cryptocurrency, saying that “crypto-assets” is a better term to say rather than calling them actual currencies at the moment. Andrew has shown support to the anti-crypto statements. Andrew gave a lot of importance to the argument that discusses the value of cryptocurrency in general, mentioning his own views that cryptocurrencies do not have a stable value to them. Andrew has been saying this for quite a few years now and doesn’t seem to believe that crypto will have a bright future ahead.
Invest and Lose – Andrew Baily
Governor Andrew warned crypto investors in a statement, saying that he has been warning investors about the dangers of crypto and wishes to warn them again. Andrew said that the investors might lose all of their money if they decide to spend a big portion of it in crypto.
These statements issued by the governor are very similar to those released by the UK Financial Conduct Authorities. The FCA has also been warning British citizens on multiple occasions about the dangers and risks of investing in crypto in relation to the massive fall of the crypto market that happened back in January of this year.
Corrections and Recovery
The Major correction of the crypto market landed a very bad hit on the market. Bitcoin, which was booming, fell at an astonishing rate, dipping to a low of just $33,000. Even after these corrections, the crypto market seems to have recovered and has been swelling at a substantial rate.
The total market cap of crypto has reached over $2 Trillion in value and continues to grow even more. Bitcoin competitors like Ethereum, PolkaDot, $Doge have seen a massive increase in price in a couple of months, indicating the massive rise in popularity of the digital currencies.
Even if Governor Andrew thinks that cryptocurrencies do not have enough value, the situation is seen to be going in quite the opposite direction. The Tax Authority of England is also not yet ready to ignore crypto and thinks that there is a possibility that it can be used for money laundering and other illegal activities. Last month, the customs revealed plans on solidifying policies regarding crypto-based tax evaders.