Cryptocurrency investors should be prepared to lose all their money, Bank of England governor says

CNBC ^ | 07 May 2021 | Ryan Browne

[zeestephen]

When asked about the rising value of cryptocurrencies, Bank of England Governor Andrew Bailey said: "They have no intrinsic value."

[em2vn]

Fiat currency is a government issued currency where as cryptocurrency is an internet scheme much like multilevel marketing. A government currency is not backed by anything other than the strength of the issuing nation, but that is far better than the nothing of the internet.

[Presbyterian Reporter]

The same can be said of the Pound Sterling.

[cuban leaf]

Modern fiat money is at least backed by the military of the country that provides it. They have a vested interest in its value. Crypto enjoys no such status.

[cuban leaf]

The “greater fool” concept...

[cuban leaf]

I agree. That’s why commodities and real estate are nice. Including PMs. They have intrinsic value, especially during an apocalypse, which is where we are right now.

[cuban leaf]

Paper money wears out, so they are always burning old dollars and replacing with new ones.

[neefer]

All based on internet access. You cannot touch crypto currency or hold it in your safe. If a nuclear bomb hit Washington, and chaos ensued, you have nothing.

You can keep your crypto in a home safe on what's called a cold wallet. Ledger and KeepKey have been around since 2014. You can also write down your private keys to safeguard from a disaster. A new cold wallet generation is coming soon. Ngrave and Bisq have person-to-person transaction wallet prototypes.

[SgtHooper]

Oh great! Nothing to do with AlGORe is it? :-)

[riri]

Strange, how many corporations are now holding BTC on their books?

Several banks are slated this year to allow BTC accounts.

Paypal takes btc.

Oakland As just starting take Doge coin in their merchandise stores.

[Pollard]

Yeah, I know. First thing that popped into my head when I first discovered Algorand was Al Gore Land.

[lucky american]

Doesn’t that require internet access to exchange? It’s zeros in a database somewhere. it’s not gold, silver, ammo, or seeds.

[neefer]

Doesn’t that require internet access to exchange? It’s zeros in a database somewhere. it’s not gold, silver, ammo, or seeds.

Your debit or credit card requires access to the internet or do you have all your money physically in your home?

No, crypto is not stored in a database. It's a distributed ledger with multiple verification requirements. The bank stores your money in a database as a series of zeros and ones.

True, crypto is not gold, silver, ammo or seeds. Those are commodities not fractional currency. Like tulips, they have their limitations as currency. Like other currency, crypto is a tool that facilitates trade of commodities or services.

However, there is type of crypto called stable coins which are backed by other currency or precious metal. Tether is tied to the US dollar and the Chinese are introduced a crypto that is pegged to gold.

[lucky american]

I own one credit card,I don’t have a debit card, I buy everything with cash or check. I guess I’m old school. my paycheck is direct deposit but when I need cash, I cash a check.

[ohioman]

Crypto screws over Governments around the world - Love it!

[numberonepal]

With the expansion of the investment vehicles available, this is just \London\ trying to drive a steak in to the heart of crypto.

Stick with American ISO20022 standardized cryptos and you'll be ok. If you have European or Chinee crypto dump it now.

[Cletus.D.Yokel]

Did the crypto market respond (+ or -) yesterday.
Friday is typically a “financial movement” day anyway.

[numberonepal]

Crypto doesn’t respond to the market as far as I can tell. Doge Coin went up and Doge Token went down. Dunno.

[Antoninus]

Neither does any other fiat currency.

The difference is this. National and international governing bodies could make crypto worth nothing tomorrow if they wanted to.