Financial institution of Korea Governor Lee Ju-yeol has mentioned that crypto belongings like bitcoin haven’t any intrinsic worth – put merely, a measure of what an asset is definitely price.
● “It is vitally tough to foretell the worth, however its value will likely be extraordinarily risky,” mentioned the financial institution chief in response to a query from a lawmaker who needed to know whether or not bitcoin’s current bull run, the place its value reached a document excessive above $58,000, was short-term.
● Lee additionally spoke concerning the potential causes supporting bitcoin’s current rally. He believes that rising company curiosity in BTC, in addition to considerations over looming extreme inflation because of an excessive amount of fiat cash printing by world governments, has given the crypto a leg up.
● “These belongings noticed a steep rise within the shortest time period. I might say institutional buyers’ evaluation of utilizing bitcoins as a hedge could possibly be interpreted as one other issue,” he defined.
● The central financial institution governor additionally revealed that the “financial institution is near finishing our overview of designs and related applied sciences relating to bank-controlled digital currencies,” in keeping with a separate report by The Korea Instances.
● Bitcoin slumped greater than 17% to below $48,000 on Feb. 22 after U.S. Treasury Secretary Janet Yellen criticized the highest cryptocurrency as an “extraordinarily inefficient method of conducting transactions.”
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