Bank of England Official Says Retail Investors Don’t Understand Crypto
Bank of England Official Jon Cunliffe Says There Is No Intrinsic Value Around Cryptocurrencies
During a recent event Hosted by The Wall Street Journal, the Bank of England’s Jon Cunliffe opined that retail investors don’t really understand cryptocurrencies.
He added that cryptocurrency buyers could end up losing all their money as digital assets are highly speculative.
The oft-repeated warning is highly pertinent in the wake of the Terra protocol collapse. The original LUNA token dropped to zero in a matter of days, impoverishing investors.
Cunliffe believes that digital assets have no intrinsic value and therefore fluctuate depending on market sentiment.
He added that cryptocurrencies are not really considered a financial investment by retail investors.
The BoE official added that cryptocurrencies should be treated as high-risk securities.
The total cryptocurrency market cap currently stands at $1.29 billion.