Bank of England Governor: Bitcoin 'Has Pretty Much Failed'

The governor of the Bank of England has spoken out against bitcoin arguing that it’s neither a store of value or useful to purchase things with.

Speaking to student’s at London’s Regent’s University, Mark Carney, the Bank of England Governor, said:

It has pretty much failed thus far on … the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange.

He did, however, add that the blockchain could prove useful in verifying financial transactions, reports the Telegraph. Carney now joins a list of growing naysayers against the crypto market.

Last month, Goldman Sachs Group Inc.’s global head of investment research, projected that many cryptocurrencies are unlikely to survive. At the time, Goldman’s Steve Strongin, stated that investors should be prepared for coins to lose all of their value as they get outcompeted. Robert Shiller, Nobel-prize winning economist, said in January that bitcoin won’t become a ‘permanent feature‘ in the finance world.

Speaking in Switzerland at the time, Shiller said:

I tend to think of bitcoin as an interesting experiment, it’s not a permanent feature of our lives. We’re over-emphasising bitcoin, we should broaden it out to blockchain, which will have other applications.

Whereas, Cecilia Skingsley, Deputy Governor at the Swedish Central Bank, claims that bitcoin isn’t even a currency.

She said:

[Cryptocurrencies] don’t meet criteria to be called money: they don’t store value, they fluctuate, and they’re not at a stable rate of exchange.

Yet, while the digital currency has its critics it remains a popular and viable currency for traders to invest in. Even though the beginning of 2018 proved to be a tough start for the crypto market amid calls from authorities to regulate the industry, it has since seen prices increase.

Bitcoin is now trading at $11,592, representing a 34.50 percent increase over the past seven days. Considering it was valued at just over $6,000 at the start of February it has improved significantly. It now has a market cap value of $195.6 billion. While ethereum still remains under the $1,000-mark it has increased by 12.56 percent in seven days. It’s now trading at $948.

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