Central bank chiefs in Europe and the UK collectively urge: Be prepared to lose all your investment if you want to invest in cryptocurrencies.

The Governor of the Bank of England, Andrew Bailey, stated that cryptocurrencies have no intrinsic value, and individuals investing in cryptocurrencies are likely to lose all their money. The President of the European Central Bank, Christine Lagarde, agrees and stated that "crypto" and "currency" are fundamentally different concepts that cannot be merged together.

Reiterating the Lack of Intrinsic Value

According to CNBC, Bank of England Governor Andrew Bailey has warned cryptocurrency investors to be extra cautious when allocating funds to these asset classes, as those involved in such investments are at high risk of losing all their money:

"I have to be honest, if you buy bitcoin, you should be prepared to lose all your money."

Bailey further emphasized that cryptocurrencies lack "intrinsic value," but that doesn't mean they are without value:

"They have no intrinsic value, but that does not mean people don't give them value because they may have extrinsic value."

Additionally, Bailey added that he doesn't like to put "crypto" and "currency" together, suggesting the community should use other terms like "crypto assets."

European Central Bank President Concurs

European Central Bank (ECB) President Christine Lagarde also mentioned cryptocurrencies at a webinar hosted by the European University Institute on Friday. Quoting the Bank of England Governor's views, she stated:

"'Crypto' and 'currency' do not fit well together, and I fully agree with Dr. Andrew Bailey on this conclusion."

When asked if the ECB intends to counter cryptocurrencies with a digital euro, Lagarde noted that cryptocurrencies are different from stablecoins and central bank digital currencies (CBDCs). The ECB President emphasized the "real risk people are taking" by investing in cryptocurrencies, citing Bank of England Governor Andrew Bailey.