Bitcoin (BTC), by far the most popular and best-known cryptocurrency, has as many dislikes as its fanatics. One of them, the Bank of England, warned that BTC could become ‘worthless’ at some point, warning that investors in crypto should be prepared to lose everything.
Like most cryptocurrencies, BTC often experiences wild price fluctuations. It is also worth noting that Bitcoin, which saw a drop of $20,000 last month, is worth almost five times its current price of $48,500, its value of $10,000 just 14 months ago. But if we look at what Sir Jon Cunliffe, vice-president of the Bank of England, told the BBC, the value of BTC could change at any moment and could see zero in theory or in practice.
The system may become increasingly difficult to maintain
According to the BBC report, the bank warns that large institutions should take a cautious approach to adopting cryptoassets and will pay close attention to market developments. Thomas Belsham, an employee in the bank’s stakeholder and media engagement division, said: “The problem is that unlike traditional forms of money, Bitcoin is not used to price things other than itself. ” he uses. In addition, Belsham reminded the limited nature of Bitcoin, underlining that more than 21 million Bitcoins cannot be mined and that Bitcoin may eventually become worthless.
So far, approximately 18.9 million BTC, or in other words 90 percent of the total supply, has been mined. Although the system was designed in such a way that the last BTC would not be mined until 2140, Belshan nevertheless notes that this system may become increasingly difficult to maintain over time.
On the other hand, government agencies’ views on BTC and cryptocurrency in general differ from country to country. For example, Sweden has called on all of Europe to ban crypto mining due to environmental concerns, while China has also declared all crypto transactions illegal in the past months. By contrast, El Salvador was the first country to adopt Bitcoin as an official unit and plan to build a city based on BTC.
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