Bank of England official Jon Cunliffe says there’s no intrinsic value around cryptocurrencies
During a recent event hosted by The Wall Street Journal, Bank of England Jon Cunliffe opined that retail investors do not actually understand cryptocurrencies.
He added that cryptocurrency buyers could end up losing all their money since digital assets are highly speculative.
The oft-repeated warning is highly relevant in the wake of the collapse of the Terra protocol. Its native LUNA token plunged to zero in days, impoverishing its investors.
Cunliffe believes that digital assets have no intrinsic value, which is why they fluctuate depending on market sentiment.
He added that cryptocurrencies are not actually viewed as a financial investment by retail investors.
The BoE official has added that cryptocurrencies should be treated as risky securities.
The total cryptocurrency market capitalization currently stands at $1.29 billion.