England is not impressed by bitcoin
Andrew Bailey, UK's Financial Conduct Authority (FCA) Head, has declared that bitcoin is still unstable and it can be speculative. This declaration comes after investors and other enthusiasts have started to invest massively into bitcoin.
However, Bailey is not the only person who is still skeptical about the massive rise in the value of bitcoin. Other regulators and financial institutions have declared that people are investing into an unknown and unstable territory.
Financial institutions and regulators are still confused when it comes to bitcoin’s value
Many experts that work in financial institutions have declared that they are still trying to figure out how bitcoin is valued. Moreover, it is still a mystery how bitcoin rose more than a 1.000 percent in just a year.
Andrew Bailey has declared in a statement:
“If you look at what has happened this year, I would caution people. We know relatively little about what informs the price of Bitcoin. It’s an odd commodity as well, as the supply is fixed. If you want to invest in Bitcoin be prepared to lose your money – that would be my serious warning.”
“If you want to invest in Bitcoin, be prepared to lose all your money” warns the head of the Financial Conduct Authority Andrew Bailey #newsnight pic.twitter.com/WRIwYOPCYQ
— BBC Newsnight (@BBCNewsnight) December 14, 2017
However, Bailey has also declared that bitcoin is considered to be a product. This product is also limited. As we know, the bitcoin market is made out of 21 million coins.
Sir John Cunliffe, the Bank of England Deputy Governor, has declared that investors should be very careful when they decide to invest in bitcoin. It is important for people to do their homework before spending their money on the cryptocurrency.
Sir John Cunliffe has declared that:
“This is not at a size where it’s a macroeconomic risk to the global economy, but when prices are moving like that, my view would be investors need to do their homework. This is not a currency in the accepted sense. There’s no central bank that stands behind it. For me, it’s much more like a commodity.”
