December 11, 2023

The head of the Bank of Korea called the rally in bitcoin quotes a temporary phenomenon

Lee Zhu-yeol is confident that cryptocurrencies will not be able to escape from high volatility, since they do not haveintrinsic value.

Bank of Korea Governor Lee Joo Yeol believes that the rallybitcoin quotes are a temporary effect caused by interest in the main digital coin from large investors, Yonhap reports. According to him, fluctuations in cryptoasset quotes will continue, and high volatility will prevent digital coins from becoming a full-fledged payment instrument.

“Crypto assets have no intrinsic value. It is very difficult to predict the price of bitcoin as it is extremely volatile, "said the head of the Bank of Korea.

Lee Zhu Yeol mentioned Tesla's $ 1.5 billion investment in bitcoin and the desire of other investors to use the main digital coin to hedge risks as an alternative to gold.

Earlier in the cryptocurrency really startedinvest in large companies. On February 24, MicroStrategy acquired 19.4 thousand bitcoins for $ 1.02 billion. The deal was completed when the cost of the main digital coin was $ 52.7 thousand. The consulting giant The Motley Fool plans to buy bitcoins for $ 5 million. The company's analysts believe that the main digital coin could rise in value 10 times in the long term.