The Bank of England’s former governor Andrew Bailey is warning people that if they’re interested in buying bitcoin, they should be prepared to “lose all their money.”
Andrew Bailey Doesn’t Think Much of BTC
Bailey is not talking about bitcoin’s latest bit of volatility, which has seemingly come about due to the latest fear and panic surrounding the coronavirus. No, he believes that bitcoin ultimately has no value, and that regardless of the global pandemic, he doesn’t see bitcoin lasting much longer.
In an interview, he comments:
There’s no guarantee of the value of bitcoin… I’ve said publicly because we were concerned about it—if you want to buy bitcoin, be prepared to lose all your money. If you want to buy it, that’s fine, but understand that what you’ve got has no intrinsic value. It might have extrinsic value, but no intrinsic value.
In other words, it only appears to have value on the outside, though Bailey has made it perfectly clear that he doesn’t consider bitcoin a currency.
Bailey appears to join those who have never thought much of the world’s number one cryptocurrency by market cap. Among those figures is Warren Buffett, who despite recently being gifted a phone with an entire bitcoin on it by TRON founder and CEO Justin Sun, still said in a recent discussion that he has no bitcoin and “never will.”
Buffett has often commented on the negative side of bitcoin, calling it “rat poison squared” and even comparing it to a button on his coat in an interview not too long ago when discussing its alleged uselessness as a financial tool.
Charlie Munger – the vice chairman of Buffett’s company Berkshire Hathaway – has always been there to back him up, stating recently that he “hates things like bitcoin.” He further stated:
I hate things that are intrinsically antisocial… People in the investment management industry should prepare for tougher times ahead. They are wretched excessing in many well-paid hedge fund and private equity businesses.
However, while bitcoin has always had a long list of “haters” and doubters to its name, others are seemingly losing their confidence in the cryptocurrency as of late due to its increased volatility. The currency has failed to keep up its $10,000 price that it first attained last month, which has caused many to question whether it qualifies as a legitimate “safe haven.”
People like Mike Novogratz are beginning to understand and take notice of this doubt, though bitcoin still has a long list of supporters and followers including Robert Herjavec, who recently stated that he’s certain bitcoin and cryptocurrency payments are the future, and that businesses need to begin relying more on crypto than on fiat.
The Convenience of Bitcoin?
Consumers, over the long run, always go to convenience, and bitcoin is just convenient.