Bitcoin Is Not Suitable For Payment Because Its Criminality Rate. The Governor of the British Central Bank, Andrew Bailey recently warned and gave his views on Bitcoin and cryptocurrencies. This he conveyed in a Podcast Jobs of the Future.
His warning came after the crypto market crashed, shedding nearly $500 billion in market value this month. Bitcoin, the largest cryptocurrency, has fallen more than 25 percent over the past 30 days.
While Bailey admits blockchain, the technology that underlies cryptocurrencies, is important, Bailey is not convinced about bitcoin as a means of payment. He added the UK’s central bank was planning its own digital currency.
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“In terms of payments, I don’t think it’s going to be crypto in the bitcoin sense of the term. I don’t think it’s really a practical means of payment,” Bailey said, quoted from Bitcoin.com, written Saturday (28/5/2022).
“What I think has to be determined is, if we are more likely to live in a world of digital currency than archaic payment methods, exactly what form of digital currency, digital use, becomes. which is the accepted norm,” he continued.
He also admits he doesn’t own crypto as his investment asset. He feels that he will not be liked by Bitcoin supporters because according to him, bitcoin has no intrinsic value.
“It can have extrinsic value in the sense that people want to have it. People collect all kinds of things but have no intrinsic value,” he said.
Bailey was never a fan of bitcoin or crypto. He said last month, crypto created “opportunities for really criminal criminals”.
In March last year, he said cryptocurrencies were dangerous. Then In November, Bailey raised concerns about El Salvador adopting bitcoin as legal tender alongside the US dollar.
Stuck in the Fear Zone
However, there is little positive news for the crypto as the bitcoin Fear & Greed Index, which has been stuck in the “fear” zone for the past month and hit the second lowest fear level recorded in the index’s history last week, has risen slightly in recent years.
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Bitcoin Is Not Suitable For Payment Because Its Criminality Rate. This suggests the bearish sentiment could ease, especially if bitcoin crosses USD 30,000. But Moya said falling Treasury yields, which make cryptocurrencies attractive, had failed to move investors.
“Right now, no one wants to buy this dip. Bitcoin can’t stabilize until Wall Street looks calm and that probably won’t happen for a while,” said Moya.
On the other hand, the tech-focused Nasdaq fell 2.3 percent. The S&P 500 also fell, albeit more moderately.
