The Deputy Governor of the Bank of England (BOE) has said that Bitcoin may be "worthless".

Bitcoin is by far the most popular and well-known cryptocurrency, but a lot of people still disagree.The Bank of England warns that those who invest in cryptocurrencies must be prepared to lose everything as they can become "worthless" at some point.Like most cryptocurrencies, Bitcoin often faces crazy exchange rates. It was worth $ 20,000 last month.

However, it should be noted that at its current value of $ 48,500, Bitcoin is worth almost five times what it was 14 months ago of $ 10,000.

However, Bank of England (BoE) Vice President Sir Jon Cunliff has warned of the risks associated with investing in cryptocurrencies. “The price can be very different and [Bitcoin] can drop to zero in theory but in practice,” he told the BBC. The bank said large companies need to be cautious about the use of crypto assets and will be more cautious about the market.

“The problem is, unlike the structure of money, Bitcoin isn't used as a price for anything else. As Bitcoin enthusiasts say, a Bitcoin is a Bitcoin. But a concept is a currency. You can't, ”wrote Thomas Belsham. World Bank Stakeholders and Media Engagement Department.

Belsham added that bitcoin's shortages and finiteness (no more than 21 million bitcoins would be mined) "would render bitcoin worthless in the end." Around 18.9 million bitcoins have now been mined, which is 90% of all devices, but the network was designed so that the last coin would not be mined until 2140. Bellsum warns that over time, this system can be difficult to maintain.

“Simple game theory suggests that the reversal process will bring in some smart money at some point. When this happens, investors should be prepared to lose it all in the end.

In general, government entities' perceptions of Bitcoin and cryptocurrencies vary from country to country. Given the environment, Sweden called for a ban on cryptocurrency mining across Europe, while China directly declared the entire cryptocurrency industry illegal and strictly regulated. El Salvador, on the other hand, is the first country to recognize Bitcoin as legal tender and plans to build a city around Bitcoin.