[2020-10-13] BoE's Bailey sees little intrinsic value in Bitcoin

[bbc.reporter]

Does he have the right to judge anything about Bitcoin only because he is the governor of the Bank of England? I reckon let the people know and judge it on their own.



LONDON (Reuters) - Bank of England Governor Andrew Bailey said on Monday it was hard to see how Bitcoin BTC= had any intrinsic value and he cautioned over its use as a means of payment.

“I have to be honest, it is hard to see that Bitcoin has what we tend to call intrinsic value,” Bailey said during a BoE question and answer session with members of the public.

“It may have extrinsic value in the sense that people want it.”

He said he was “very nervous” about people using Bitcoin for payments because its value was uncertain, pointing out that investors should realise its price is extremely volatile.

Read in full https://www.reuters.com/article/us-britain-boe-bailey-bitcoin-idUSKBN26X2AH

[o_e_l_e_o]

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And remind me what the intrinsic value of fiat is, when central banks can churn out billions or even trillions of it on a whim, massively devaluing that which already exists? Sure, the price of bitcoin might be volatile, but at least it can go up as well as down, as opposed to fiat which just steadily heads for the bottom.

[senya-com]

Actually mining tools are composing the intrinsic value of bitcoin, as well as permanent need for internet to be available at any point in any moment.

[DapanasFruit]

We should understand that he is actually representing the view of the government over Bitcoin. I still have to see someone  in central banking that is really embracing Bitcoin fully. In some cases, the government is getting into Bitcoin all because they are viewing Bitcoin as a way to circumvent economic embargo or sanctions and not really because they are so convinced of the advantages and beauty of Bitcoin. This is all about empowerment away from the clutch and overarching influence of the government and no government will be working to make itself obsolete or irrelevant. So let's allow time and circumstances to vindicate the usefulness of bitcoin and I think that can be coming in our lifetime.

[Lucius]

So did anyone expect any other statement from a state institution like the Bank of England? Most countries will not undermine their financial system in any way, and it is a well-known fact that the pound is very important and that the UK has never agreed to replace it with the euro.

The financial system that currently governs was set up a long time ago, and its basic goal is to keep people dependent on that same centralized system. Central banks will protect this system at all costs, so we should not live in any false hopes that people like Andrew Bailey or Steven Mnuchin will ever say something positive when it comes to Bitcoin.

Although banks in the EU and the US are increasingly getting involved with crypto, it should be borne in mind that these are private banks that have a profit as their primary goal, and it does not matter what they profit from.

[o_e_l_e_o]

So did anyone expect any other statement from a state institution like the Bank of England?

It is not in the least bit surprising and is exactly what we see time and time again from institutions, banks, and big investors. Central banks say fiat is best. Wall Street investors say stocks are best. Gold bugs say gold is best.* Nobody who is heavily invested in something else is ever going to tell the truth about bitcoin. And meanwhile bitcoin keeps marching on with development, with adoption, with higher prices, while fiat continues to be printed in to oblivion.

*Where is that user who always bleats on and on about how bitcoin is dead, gold is going to moon, and Peter Schiff is a genius? Haven't seen him around in a while, haha.

[Lucius]

*Where is that user who always bleats on and on about how bitcoin is dead, gold is going to moon, and Peter Schiff is a genius? Haven't seen him around in a while, haha.

I am sure that he is going through the difficult days of the last weeks, as well as everyone who for some reason has a completely negative attitude towards BTC. I respect the fact that everyone has the right to their own opinion, but those who blindly follow their idols (whether it is WB or PS) will never change their opinion - it is, after all, not their own opinion - "I think what they think" attitude.

You are probably thinking of this user, and he obviously enjoys his BitCorn, though it probably tastes bitter to him

[pixie85]

Very nervous that's funny. I bet he also gets nervous when GBP is down and XBT up.

Too much nerves will get you bald early, Andrew... oh, wait.  

I'm pretty sure GBP is going to be less important than bitcoin for the world economy.