Bank of England Boss – Bitcoin is a failed cryptocurrency: According to the Chief of Bank of England, Mark Carney, Bitcoin has failed as a cryptocurrency. It does not have any value as well. Also, he further stated that the actual number of users using it as a currency is also pretty limited.
Belief in blockchain:
On the other hand, even he agrees that the underlying technology that is the blockchain technology is pretty powerful. This blockchain can help financial institutions as well as companies to create a new medium of transaction.
He was speaking at London’s Regent University. He further added that Brexit would be concluded smoothly. Moreover, he stated that there would be no last-minute glitches when Great Britain finally pulls out.
On the other hand, he clearly stated that when it comes to cryptocurrencies like Bitcoin, it is important to stay away from these. These cannot substitute the Fiat currency. This is the reason why Bitcoin can be considered as a valid currency. He also added that investors should not invest in Bitcoin due to the high volatility. He was of the opinion that Bitcoin can reduce down to 0 at any point in time.
He clearly stated that users should be putting in the money which they can afford to lose. They should not be risking a significant pile of money when it comes to cryptocurrencies like Bitcoin.
In spite of the warnings from him, the momentum in Bitcoin continues. More and more investors are pouring in money into Bitcoin. This is the reason why it is able to gain consistently. In the last few weeks, it has risen from $ 5500 to almost $ 11,500. This marks a gain of 100% in just a couple of weeks. This is because the momentum in Bitcoin is increasing significantly.
It remains to be seen whether, in the future, investors stay away from cryptocurrencies like Bitcoin or whether the utilize Bitcoin in order to make good returns. Most of the traditional investment and the financial community is against Bitcoin. They believe that it cannot be considered as a currency. Moreover, since the underlying value of Bitcoin is not clear enough, most of the traditional investors are staying away from Bitcoin. It is up to the consumers to find out whether they want to invest in Bitcoins or whether they do not see any value in Bitcoin.
With that being said, for the time being, it seems to be going pretty strong. With the momentum increasing, the cryptocurrency can scale up new highs in the future as well.
Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.