Financial institution of Korea Governor Lee Ju-yeol has stated that crypto belongings like bitcoin haven’t any intrinsic worth – put merely, a measure of what an asset is definitely price.
● “It is extremely tough to foretell the worth, however its worth shall be extraordinarily risky,” stated 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 worth reached a document excessive above $58,000, was non permanent.
● Lee additionally spoke in regards to the doable causes supporting bitcoin’s current rally. He believes that rising company curiosity in BTC, in addition to issues over looming extreme inflation as a consequence 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 may very well be interpreted as one other issue,” he defined.
● The central financial institution governor additionally revealed that the “financial institution is near finishing our assessment of designs and related applied sciences concerning bank-controlled digital currencies,” based on 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 means of conducting transactions.”
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