Bank of England Defames Cryptocurrency

Banks really don’t like the idea of people controlling their own money.


Digital currencies “have no intrinsic value,” according to Bank of England (BOE) Governor Andrew Bailey. He warned that people who invest in crypto should be prepared to lose all their money.

A skeptic of crypto, Bailey was asked at a press conference about the rising value of cryptocurrencies. He said, as quoted by CNBC: “They have no intrinsic value. That doesn’t mean to say people don’t put value on them, because they can have extrinsic value. But they have no intrinsic value.”

The BOE governor added: “I’m going to say this very bluntly again – buy them only if you’re prepared to lose all your money.”

Bailey’s comments follow a similar warning from the UK’s Financial Conduct Authority (FCA), which said in January that “Investing in crypto assets, or investments and lending linked to them, generally involves taking very high risks with investors’ money.”

So what about investors in the stock market?

How about the inexplicable fact that Apple is worth $1 trillion, which is probably more (or at least about the same) as the total gross retail price of every phone they’ve ever sold?

How about that $700 Tesla stock?

Is there any way people who buy that could lose all their money?

I forget – has a stock market ever crashed?

Frankly, I don’t really think the stock market will crash, because all of this money that is being printed has to end up somewhere. No one is going to hold it in a back account, so it has to have some end destination.

There are four places it can go:

  1. Real estate
  2. Stock
  3. Precious metals
  4. Crypto

That is basically and actually all.

Any of those markets could collapse. With real estate or precious metals, you theoretically won’t be left with nothing – but in the event that civilization totally collapses, these are the only things that are going to have real value:

  1. Canned food
  2. Guns and ammunition
  3. Young women

I can’t really foresee a collapse of the crypto market that comes short of a collapse of the civilization itself.

Of course, crypto seems massively overvalued right now – but the same is true of real estate and stock!

Everything is overvalued because they printed all of this money and again – it has to go somewhere!

For the sake of reasonableness, I wouldn’t think anyone would want 100% of their money in crypto. If I had a lot of money, I would be buying rural property that is physically defensible and the weapons to defend it with.

But here’s the bottom line: there is no possible way that holding crypto can be dumber than holding cash. We know as an absolute matter of fact that the dollar is going to collapse, and presumably every other fiat currency on the planet is going to get dragged down with it.

Maybe property or metals are better than crypto. Maybe even the stock market is better than crypto – I am not a financial advisor and I have no idea.

But what we know as a matter of fact is that you want your money somewhere.