SEOUL, Feb. 23 (Yonhap) — Cryptocurrencies comparable to Bitcoin don’t have any intrinsic worth and their value swings are anticipated to expertise larger volatility, the pinnacle of the Financial institution of Korea (BOK) stated Tuesday.
“There isn’t any intrinsic worth in crypto property,” BOK Gov. Lee Ju-yeol informed lawmakers.
Requested by a lawmaker about whether or not a current surge within the value of Bitcoin is short-term, Lee replied, “It is vitally tough to foretell the value, however its value will likely be extraordinarily risky.”
A current rally in Bitcoin could also be a results of a number of elements, together with mass purchases by Elon Musk’s Tesla Inc. and plans by institutional traders to make use of the digital token as a hedge, Lee stated.
The worth of Bitcoin, the world’s largest cryptocurrency, surpassed US$50,000 this month. In South Korea, Bitcoin exceeded 65 million received ($58,479).
Some traders say Bitcoin could possibly be another as a hedge to the gold, however critics say the cryptocurrency frenzy is a bubble created by extra liquidity amid the pandemic.
Lee additionally reiterated that it’s not fascinating for the BOK to immediately purchase bonds issued by the Korean authorities.
In that case, it would improve worries about fiscal soundness and undermine the belief of the central financial institution, Lee stated.