The crypto industry is making naysayers every day. With the markets on high alert, some people are taking the opportunity to denigrate crypto assets and warn investors. While others still see cryptocurrencies as a solution to multiply earnings, the same is not true for everyone. For the governor of the Bank of England, we must be wary of cryptos.
Andrew Bailey Against Cryptos
Crypto assets have been attracting real interest since their appearance on the market. A source of undeniable profits, many people have thrown themselves into it. Individuals, companies and institutions, the sector has affected everyone. However, many investors have not taken into account the volatile side of this type of market. While the rise in prices appealed to traders, the fall brings them back down to earth.
Indeed, the crypto markets are experiencing an unprecedented drop. While prices have been going strong since 2020, the current downtrend is worrying everyone. Not because the markets had never fallen, but because such a level of decline is almost historic. The ideal solution to this situation is slow to come and speculation is linked. While some think it’s over for cryptocurrencies, others on the contrary predict that it’s just a step before the big rebound.
However, this fall is far from displeasing the main financial institutions. Indeed, some use it to denigrate this new asset class. The importance of cryptocurrencies remains mixed. On the one hand, we have the sympathizers, and on the other the opponents. In this category falls the Governor of the Bank of England. Andrew Bailey is outright showing his hostility to these digital assets.
On June 13, the latter gave his point of view before the UK Parliamentary Committee. For him, cryptography has no value of its own. As a result, it has no guarantee and presents a high risk of loss. According to him, any crypto investment involves capital losses. Moreover, the sector is full of bad actors who should be eliminated. To do this, the use of artificial intelligence tools could prove effective.
What next after the fall of the crypto markets?
As the fall in the markets has continued for several months, investors are beginning to ask themselves questions. Bitcoin (BTC), considered the biggest crypto asset, did not resist the decline. Indeed, the flagship asset has lost more than 7% of its value in the last 24 hours. These events leave no one indifferent, let alone the main world markets.
Meanwhile, some analysts such as Nigel Green are predicting the crypto rebound. For them, the current fall is proof that the course will resume in a few months. However, many people remain skeptical. In this case, Andrew Bailey. The Bank of England is clearly showing its antipathy. For Jon Cunliffe, deputy director of the institution, it is necessary to withdraw from cryptographic assets because they are risky.
The British central bank has shown its hostility to cryptocurrencies for a long time. In December 2021, she called the leading crypto “worthless”. Last April, it increased fees for businesses in the City of London by 9%. According to her, these fees will allow the financing of research on the risks associated with cryptos among others. The explosion of the cryptographic market which fell below 1000 billion dollars then becomes the main argument of the Bank of England.
Cryptocurrencies are dangerous according to the Governor of the Bank of England. With the markets showing no signs of rising for the moment, the reactions are not long in coming. Once again, the British central bank is showing its hostility towards crypto assets. While Andrew Bailey thinks they have no intrinsic value, Jon Cunliffe thinks the rapid evolution of cryptocurrencies could harm the country’s financial system.
Source : finbold
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The world is changing and adaptation is the best weapon to survive in this undulating universe. As a crypto community manager at the base, I am interested in everything directly or indirectly related to the blockchain and its derivatives. In order to share my experience and make known a field that fascinates me, nothing better than writing informative and relaxed articles at the same time.
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