Lee Ju-yeol, governor of the Bank of Korea, said that crypto-assets such as bitcoin have no intrinsic value – simply put, a measure of what an asset is actually worth.
● Lee predicted in the National Assembly on February 23 that bitcoin (BTC) will see increased price changes going forward, reports the local news agency Yonhap.
● “It’s very difficult to predict the price, but the price will be extremely volatile,” the banker said in response to a question from a lawmaker who wanted to know if bitcoin’s recent bull run, where the price is a reached record highs above. $ 58,000, was temporary.
● Lee also talked about the possible reasons to support bitcoin’s recent rally. He believes that growing corporate interest in BTC, as well as concerns about looming excessive inflation due to too much money pressure by world governments, have given the crypto an edge.
● “These assets have risen sharply in the shortest period of time. I would say institutional investors ‘assessment of the use of bitcoins as a hedge can be interpreted as another factor,’ he explained.
● The governor of the central bank also revealed that the ‘bank is nearing completion of our review of designs and applicable technology regarding bank-controlled digital currencies’, according to a separate report by The Korea Times.
● Bitcoin fell more than 17% to below $ 48,000 on February 22 after US Treasury Secretary Janet Yellen criticized the top cryptocurrency as an ‘extremely inefficient way of conducting transactions’.
What do you think of the governor of the Bank of Korea’s bitcoin comment? Share your thoughts in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons