Accodring to the British Bitcoin has No Intrinsic Value

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Accodring to The British Bitcoin has no Intrinsic Value

The issue of regulating cryptocurrencies has come to light thanks to Facebook, which is planning to launch its own currency next year. Now the British FCA warns investors about cryptocurrencies. Why?

Cryptocurrencies have no intrinsic value

The Financial Conduct Authority (FCA), which oversees the huge banking sector in London, believes that Bitcoin and other cryptocurrencies have no intrinsic value. The discussion about Bitcoin began with a debate about Libra, Facebook's cryptocurrency project. Not all civil servants in the UK are so negative when it comes to cryptocurrencies, though. Christopher Woolard, Director of Strategy and Competition at FCA stated that Libra should be under observation but shouldn't be stopped from developing further innovations.
This is a small, complex and evolving market covering a broad range of activities. Today’s guidance will help clarify which crypto-asset activities fall inside our regulatory perimeter.
FCA, however, is very suspicious when it comes to cryptocurrencies and suggests that investors should be cautious:
Consumers should be cautious when investing in such crypto-assets and should ensure they understand and can bear the risks involved with assets that have no intrinsic value.

Is Great Britain correct?

Jon Ostler from the Finder.com claims that cryptocurrencies can not be treated as real shares of companies. However, the cryptocurrency market offers an intangible asset:
It is technically true that cryptocurrencies have no ‘intrinsic value’ when compared to share ownership in actual companies, however there are many examples where a marketplace bestows value on an intangible asset. For example, the brand of ‘bitcoin’ itself has value and although its future place in society is still unclear, it is one of the most likely coins to stay the course.
Also, we shouldn't forget about the growing infrastructure and cryptocurrency services such as Bitomats.
A global critique of cryptocurrencies
Great Britain's message is not the only recent example of criticism of cryptocurrencies. Recently, the president of the US, Donald Trump, attacked Bitcoin and other cryptocurrencies. His views were later supported by many senior officials. Herbert Sim, head of business development at the Broctagon Fintech Group said that although the FCA's warning is not a ban, it might become one. He also emphasizes that criticism comes from all around the world:
This lack of enthusiasm is shared by several countries; the U.S. with its scrutiny of libra, and India, who are looking to implement a similar ban on cryptocurrencies which are not state-regulated. These movements could end up coming back to bite.

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