Bank of England Jon Cunliffe stated that retail investors do not really understand cryptocurrencies.
He added that crypto investors could lose all their money as digital assets continue to be speculative.
Disclosure followed the collapse of UST and LUNA. Many investors lost almost all of their savings after the UST and LUNA collapse.
Cunliffe believes that digital assets have no intrinsic value and therefore cryptoassets fluctuate according to market sentiment.
Cunliffe further added that cryptocurrencies are not fundamentally seen as an investment by individual investors.
The official said that cryptocurrencies should be considered under the umbrella of “risky securities”.
The total market cap of cryptocurrencies currently stands at $1.29 billion.
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