Last week, the current governor of the Bank of England, announced that crypt currencies don’t really have a monetary value. What does that mean for investors of crypto currencies?
Needless to say, any financial news are greeted with a healthy amount of scepticism, but there could be some truth to his statement. Despite the fact that many UK investors and entrepreneurs have invested heavily in crypto currencies such as Bitcoin, Mr. Bailey indicated that he does not think that alternatives currencies have any value.
So, what is the future for crypto currencies? As “crypto” is still rather a new concept, it is hard to tell what the future holds.
The problem comes when you compare crypto currencies to other leading currencies in the world. The main issue is that there are no coins and notes in circulation. You could not walk down the street with a wallet full of crypto currencies.
Okay, maybe you could use your Bitcoin account to pay for coffee in some places, and even buy a house from a Russian owned real estate agency in Marbella, Spain, but you have to ask what is the true worth of the currency.
Currencies are valued in many different ways. For instance, a gold reserve is held by top countries such as the UK and the United States to prop up the value of their currencies. However, as far as we know, no creator of any of the leading crypt currencies can support the currency in gold.
That is not the only problem. Exchange rates is an another important part of currency valuation. How is the value of crypto currencies really calculated against world currencies?
This is yet another issue that leading financial experts are grappling with when it comes to crypto. Governments do not pay each other in any form of crypto, Until that day comes, the financial news and outlook for trading in cryptocurrencies remain uncertain. As the governor said, do cryptocurrencies really exist?