- Bailey advises people not to invest in cryptocurrency.
- Added that cryptocurrencies do not have intrinsic value.
- Cameron Winklevoss reacts to it.
Although cryptocurrency has gained mainstream adoption, there are still many people who still do not show any interest in it.
Investors add Value to Cryptocurrencies
According to the recent news by Lowyat, the Bank of England Governor Andrew Bailey has advised people not to invest in cryptocurrency as it may result in loss of their savings. In a recent interview by CNBC, the governor was asked about the current rising value of cryptocurrencies. He answered that cryptocurrencies alone do not have any significant intrinsic value. The investors put money on them and increase their extrinsic value.
Winklevoss Says that People who do not Invest in Crypto Must be Prepared for Inflation.
He advised the people to only invest if they are prepared to lose everything. However, Bailey’s sceptical comment on cryptocurrency wasn’t taken very well by the crypto enthusiasts, which was very much expected. Cameron Winklevoss of the infamous Winklevoss reacted to this. He tweeted that people who do not invest in cryptocurrency must be prepared to lose all their savings due to inflation. He added that all central bankers know this, but very few understand it.
Winklevoss brothers are now billionaires because of their investment in the cryptocurrency space. However, contradictory to this, the Bank of England, in collaboration with the UK treasury, are currently finding ways to introduce a central bank-backed digital currency.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.