Bank of England Governor Andrew Bailey has gone on the record and stated that in his opinion digital currencies have “no intrinsic value” and that you should only buy them if you are “prepared to lose all your money”.
Oh, the Irony, coming from a man who is at the head of one of the world’s biggest institutions that creates money out of thin air, lends it at interest and has no problem whatsoever with continuously pumping this new money into the market.
I wonder, could it be that Mr Bailey is using the tried and tested ‘bait and switch’ method of ensuring that the general public continue to use their debt-ridden currency, backed by absolutely nothing and controlled by the private banking establishments in a centralized way?
“I’m going to say this very bluntly ….. buy [cryptocurrencies] only if you’re prepared to lose all your money.”Andrew Bailey, Governor of the Bank of England
The sheer chutzpah and irony is not lost on those of us who understand the core concepts of decentralization, and why cryptocurrencies provide ordinary people with a way of storing wealth and transacting without having to rely on the central banks, who let’s face it, do seem to have a track record of not really working in the best interests of the people.
Be prepared to lose all your money
Bailey is a long-time doom-monger of crypto, and was asked about their rising value at a recent press conference. His response was that he believes they have no intrinsic value. I wonder what would have happened if the follow up question would have been “what is the intrinsic value of the Pound, the Dollar, the Euro, the Yen…?”
One of the interesting things that should be noted is the incredible rise in the price of both Bitcoin, and just about every other Altcoin since the start of 2021. Last year saw the biggest printing of fiat currency ever seen in human history, with more money being created out of nothing in one month than the previous 2 centuries put together. And the Bank of England printed almost £1 Trillion of new money last year on Bailey’s watch. Ok, so much of this was due to the Covid pandemic, but whatever the good intention, the net effect on the economy will ultimately be the same… inflation. And it’s probably fair to say that not a brass farthing of this new money went to ordinary people directly.
The irony of printing money hand-over-fist whilst slating a highly secure, deflationary currency like Bitcoin, just because you can’t control appears to be lost on the governor. Or maybe he does get it, but doesn’t want you to know?