According to the Bank of England, the value of Bitcoin (BTC) could be worthless and people who have invested in the coin should be willing to lose anything as its value can only be used online. Without the internet, BTC is useless. The bank also found it alarming that several English citizens and even prominent investors are investing in BTC. In fact, its value skyrockets up to $ 50,000 apiece.
In early November, the price peaked above $ 67,000 but suffered an immediate sell-off after the first news of the Omicron variant of COVID-19 was canceled. Sir Jon Cunliffe, the deputy governor of the Bank of England, said that crypto investors should be prepared for the risks associated with the surge in crypto assets, followed by the continued rise in their popularity.
“Improved regulatory and law enforcement frameworks, both domestically and globally, are needed to influence developments in these fast-growing markets, manage risk, foster appropriate innovation, and maintain broader trust and integrity in the financial system “stated the Bank of England. A staff member also revealed on a separate Bitcoin blog that BTC does not perform the required functions and is very volatile.
The bank also released a statement stating that large institutions should proceed cautiously and also closely monitor developments in the market. Since the beginning of 2020, the market capitalization of crypto assets has increased tenfold. In fact, around 0.1% of UK household wealth is invested in BTC and other similar crypto assets.
If the word “Bitcoin” is new to your ears, it is the largest and most valuable coin developed in 2009 by a pseudonymous Satoshi Nakamoto. Its purpose is to serve as an alternative to digital currency. It’s also decentralized, which means the government or a central agency has no control over it.
Can BTC give power back to people?
Morgan Harper, a 38-year-old Senate candidate for Ohio, has researched the opportunities and benefits of using decentralized digital currency. Specifically, an initiative to build a decentralization power.
“One of the biggest problems facing our society is that too much power is centralized in too few hands, which has anticompetitive effects that solidify established companies and prevent innovation. It’s shifting power to a few big cities and a few dominant players in every market and away from the people of states like Ohio, ”said Harper.
One of the reasons Harper has been digging deep into BTC is because she wants to find a way to give citizens economic power and freedom so they are less dependent on large corporations. This is also because the majority of banks prefer the rich with privileged access and conditions that the working class and ordinary citizens do not have. Instead, people get hidden overdraft fees with no return on their capital.
“I want to create the right for this asset class for the people of Ohio, not because I can get it financially,” said Harper firmly.
Despite the given power and benefits of using BTC, it is still best to learn more about it by reading Bitcoin blog posts and other related materials before joining the crypto community. This is to avoid confusion and to lose a large amount of money in the long run.