Andrew Bailey is the governor of the Bank of England, and apparently, he does not like bitcoin very much.
Andrew Bailey: Not Bitcoin’s Biggest Fan
In a recent interview, Bailey trashed bitcoin and its altcoin cousins, and said that investors should only take the risk of putting their money into digital assets granted they are willing and able to lose it all at a moment’s notice. Discussing cryptocurrencies, he stated:
They have no intrinsic value. That does not mean to say people do not put value on them, because they can have extrinsic value, but they have no intrinsic value. I am going to say this very bluntly again. Buy them only if you are prepared to lose all your money.
Bailey has been tasked with governing the Bank of England since March of 2020. This is ironic in the sense that that is when bitcoin first began to take noticeable dips, largely due to the coronavirus pandemic entering the global markets. To be fair, it was not just bitcoin that fell into the doldrums. Real estate, stocks and many other assets dropped unexpectedly, and it did not seem like things were going to repair themselves anytime soon.
However, things did, and bitcoin was one of the first assets to come out of the pandemic better and stronger than ever. Two months after bitcoin fell, it rose back to $9,000 and has been on a serious bull run. One year later, it is trading in the high $50,000 range, meaning it has added more than $40,000 to its price in just 12 quick months. Talk about the asset of the century…
Considering all this information, it is interesting that Bailey has not taken notice of this newfound strength amongst bitcoin and other cryptocurrencies. Then again, perhaps he has, and he just does not care. Perhaps he is jaded somewhat by the fact that he is working in a traditional financial environment, and thus has not learned to see past the barricades and walls centralized monetary systems can create.
It’s Headed in a New Direction
However, the time has potentially come to notice this given that bitcoin is no longer being viewed as a speculative asset. It is now thought of as a hedge tool; a store of wealth that can potentially keep people’s portfolios safe and stable during times of economic strife. Bitcoin presents serious challenges and competition to banks, and thus many are beginning to offer crypto-based services to their clients as demand grows and the environment changes.
Interestingly, the Bank of England recently served as a major billboard for bitcoin, though it is not entirely clear if it wanted to. Someone had created laser messages that they were projecting against the bank’s walls, and these messages took clear jabs at centralized money systems while claiming that bitcoin could solve a lot of the world’s financial problems.