As the Bitcoin bull begins to settle above $ 16,000, financial institutions and regulators remain skeptical of the rapid rise in value

(FCA) Chief Andrew Bailey maintains that Bitcoin is a speculative bubble and that new green investors will lose the money they have invested in the cryptocurrency.

As quoted by The Independent, Bailey struck at the decentralized cryptocurrency:

"This is not a currency, it is not regulated in its form Bitcoin, it's a very volatile commodity in terms of price. "

Confusion around the value

The British regulator expressed doubts about the mystery of the valuation of Bitcoin, considering that the cryptocurrency has seen its value increase by more than 1,000% in 12 months, he predicts oney:

"If you look at what happened this year, I would warn people, we know relatively little about which informs the price of Bitcoin.It is also a strange commodity because the offer is fixed.If you want to invest in Bitcoin be prepared to lose your money – this would be my serious warning. "

Bailey conceded that Bitcoin is also classified as a commodity, given that it has a limited ceiling The head of the FCA has echoed the sentiments of the Deputy Governor Bank of England, Sir John Cunliffe, who warned investors in nove to do their homework before investing.

"This is not a size where it is a macroeconomic risk for the global economy, but when prices change like that, I think the investors have to do their homework, this is not a currency in the accepted sense, there is no central bank that stands behind, for me, it is much more than that. merchandise. "

In November, an analyst made comparisons to the dot.com bubble of the 1990s, the ultimate focus on supply / demand as that determining factor of the Bitcoin value. The amount of the virtual currency bid could be its loss in the future, according to this report.

Another analysis looks at several facets that worry traditional institutional investors about cryptocurrencies.

take encryption seriously

Despite Bailey's warnings to potential investors seeking to enter the cryptocurrency market, FCA has granted a local company permission to launch its own digital currency. At the time, Bitcoin was just above the $ 1,000 mark – so there was not the same hype around Bitcoin at all.

Similarly, Coutts Bank, head of banking for the royal family, refuses to invest in cryptocurrencies.