Tuesday, January 11, 2022

Bank of England Warns Bitcoin Could be ‘Worthless’

LONDON—Will 2022 see the surging interest and appreciation in digital currencies as was seen during 2021? Perhaps, but the Bank of England also has a warning, cautioning consumers that Bitcoin could be “worthless” and people investing in the digital currency should be prepared to lose everything.

In a warning over the potential risks for investors, the central bank questioned whether there was any inherent worth in the most prominent digital currency, which has soared in value this year to close to $50,000, The Guardian reported.

The cryptocurrency peaked above $67,000 in early November, but suffered a sell-off after news first broke of the Omicron variant of coronavirus, before stabilizing around its current level.

The deputy governor, Sir Jon Cunliffe, said the Bank had to be ready for risks linked to the rise of the crypto asset following rapid growth in its popularity.

“Their price can vary quite considerably and [Bitcoins] could theoretically or practically drop to zero,” he told the BBC.

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