CryptocurrencyFinTechRetail
The president of the European Central Bank says that cryptocurrencies are ‘worthless’ and ‘founded on nothing’.
Christine Lagarde said on Dutch television that her son had invested in cryptocurrency, without success.
“My extremely modest opinion is that cryptocurrency is worthless. It is founded on nothing, and there are no underlying assets to serve as a safety anchor,” she told College Tour.
“I have always stated that these types of assets are highly speculative and extremely risky.
“[Those who do not comprehend the risks] will lose everything.”
Lagarde says the bloc’s planned central bank digital currency (CBDC) is different and will be backed by the bank.
The implementation of the ‘digital euro’ is expected to commence in 2023.
“The day when we have the central bank digital currency – any digital euro – I’ll guarantee it,” Lagarde said. “So the central bank will be behind it.
“I think that’s vastly different from any of those things.”
China to deploy blockchain company internationally
A blockchain company backed by the Chinese State is planning international expansion.
Yifan He, CEO of Blockchain-based Service Network (BSN), told CNBC that it aimed to launch overseas in August and that its code would be open-source to engender trust.
The company is not linked to cryptocurrencies – which are frowned upon by the communist Chinese government – and aims to link blockchains together to help businesses deploy the technology through the ‘Spartan Network’.
One of its half-dozen blockchains will be a non-crypto version of Ethereum, with gas fees paid in US dollars rather than Ether.
Cryptocurrency shorts
Manchester City – who were crowned Premier League champions amid final-day drama on Sunday – have launched an NFT collection of 3D interactive cards featuring its players on Animoca Brands’ Quidd platform.
Luxury watch manufacturer TAG Heuer, founded in Switzerland more than 150 years ago, has introduced cryptocurrency payments for customers in the United States through Bitpay.
Ethereum co-founder Vitalik Buterin has said on Twitter that he is no longer a billionaire following the cryptocurrency carnage of the last few weeks.
Crypto prices
The overall market cap of the more than 19,500 coins is at $1.29 trillion at the time of writing (7am UK), up from $1.28tr on Friday morning.
Market leader Bitcoin – the original cryptocurrency created by the mysterious Satoshi Nakamoto – added more than $150 to around $30,300.BTC is slightly up in a week.
Ethereum, the second most valuable crypto coin – created as a decentralised network for smart contracts on the blockchain – added $20 to around $2,040. ETH is 1% down over the course of a week.
Binance Coin is a cryptocurrency created by popular crypto exchange Binance to assist its aim in becoming the infrastructure services provider for the entire blockchain ecosystem. Its BNB token gained $14 to $323, leaving it 8% up over seven days.
The XRP token of Ripple, a payment settlement asset exchange and remittance system,acts as a bridge for transfers between other currencies. XRP lost 1 cent to 42c and is 1% down over seven days.
Cardano is an open source network facilitating dApps which considers itself to be an updated version of Ethereum. Its ADA token, designed to allow owners to participate in the operation of the network, gained more than 1c to top 54 cents. It is 4% down over the course of a week.
Solana is a blockchain built to make decentralised finance accessible on a larger scale – and capable of processing 50,000 transactions per second. Its SOL token added more than $1 to $52.50 yet is down 5% compared with a week ago.
Meme coin DOGE was created as a satire on the hype surrounding cryptocurrencies but is now a major player in the space. DOGE remained around 8.6c, leaving it 4% down in a week.
Polkadot was founded by the Swiss-based Web3 Foundation as an open-source project to develop a decentralised web. Its DOT token, which aims to securely connect blockchains, rose slightly to $10.20 yet is 9% lower than its price a week ago.
Avalanche is a lightning-quick verifiable platform for institutions, enterprises and governments. ItsAVAX token rose $1.50 to $31.33 yet is 8% down in a week.
To see how the valuations of the main coins have changed in recent times – and for round-ups of recent cryptocurrency news developments – click here.
For valuations of the top 100 coins by market cap in US dollars, plus 24-hour price change, see below.
FAQs
Bitcoin hasn't been worthless since it was first introduced—but it is still in its discovery phase. This means investors, consumers, businesses, scientists, and governments are still exploring its uses and value.
Why is crypto worth nothing? ›
It has no intrinsic value and is not backed by anything. Bitcoin devotees will tell you that, like gold, its value comes from its scarcity—Bitcoin's computer algorithm mandates a fixed cap of 21 million digital coins (nearly 19 million have been created so far). But scarcity by itself can hardly be a source of value.
Does crypto actually have value? ›
A bitcoin has value because it can be exchanged for and used in place of fiat currency, but it maintains a high exchange rate primarily because it is in demand by investors interested in the possibility of returns.
Why does crypto have no value? ›
Products, services, wages, and salaries are not valued in bitcoin but in fiat currency. Bitcoin must be converted to a government-backed currency to be used, even in countries where it is recognized as legal tender. The argument here is that because Bitcoin is convertible, it doesn't have any underlying value.
Can crypto assets become worthless? ›
Cryptocurrencies encompass similar risks as traditional finance, including the potential for permanent loss of capital. However, Bitcoin's risk of becoming worthless diminishes over time due to its resilience and increasing adoption.
Is cryptocurrency even worth it? ›
There are several risks associated with investing in cryptocurrency: loss of capital, government regulations, fraud and hacks. Loss of capital. Mark Hastings, partner at Quillon Law, warns that investors must tread carefully in crypto's unique financial environment or risk significant losses.
Is crypto waste of money? ›
Despite what every loudmouth on the internet yells at you from their digital soapbox, buying cryptocurrency isn't a safe bet for your investing future. In fact, more than 80,000 Bitcoin millionaires who were living high on the hog saw their accounts drop several zeros during the crypto crash of 2022.
Why use crypto instead of cash? ›
Safety and security
Keeping your money in a bank or financial institution may reduce the risk of lost or stolen cash. They have strong, audited security measures in place. But printed cash can be counterfeited. Cryptocurrencies can be stored two ways: self-custody or third-party custody.
Does crypto really have a future? ›
Key Takeaways. Bitcoin, the cryptocurrency, is most likely to remain popular with speculators over the next decade. Bitcoin, the blockchain, will probably continue to be developed to address long-standing issues like scalability and security.
Who controls the value of cryptocurrency? ›
Bitcoin's price is primarily affected by its supply, the market's demand, availability, competing cryptocurrencies, and investor sentiment. Bitcoin supply is limited—there is a finite number of bitcoins, and the final coins are projected to be mined in 2140.
Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is believed to own the most bitcoins, with estimates suggesting over 1 million BTC mined in the early days of the network.
Do people actually get money from crypto? ›
There are several ways cryptocurrency can make money for you. Decentralized finance applications let you loan your crypto with interest; you can stake a compatible one on a blockchain or at certain exchanges for rewards, or you can hold on to it and hope its market value increases.
Can you lose real money with crypto? ›
Cryptocurrencies are still largely unregulated
If a platform that exchanges or holds your crypto assets goes bankrupt, there's a risk you could lose all your capital. Similarly, your assets could be at risk if an exchange holding your crypto is hacked by criminals.
Does crypto turn into real money? ›
Use an exchange to sell crypto
You'll quickly exchange cryptocurrency into cash, which you can access from your cash balance in Coinbase. From there, you can transfer the money to your bank account if you wish.
Is crypto currency nonsense? ›
Sincerely believing a car is identical to a horse does not alter objective reality. Similarly, the “crypto as currency” and “crypto as investment” narratives have been thoroughly debunked because the truth value of these statements is predicated on factual claims that are demonstrably falsifiable.
What is the problem with crypto? ›
Cryptocurrencies aren't backed by a government or central bank. Unlike most traditional currencies, such as the U.S. dollar, the value of a cryptocurrency is not tied to promises by a government or a central bank. If you store your cryptocurrency online, you don't have the same protections as a bank account.
Can crypto value go to zero? ›
If a crypto goes to zero, it means that its value has dropped to zilch, and there is no market demand for it. The fall in value can happen due to various reasons, such as a lack of adoption, security vulnerabilities, regulatory issues, or the asset simply going out of favor with investors.
What will $1000 of Bitcoin be worth in 2030? ›
If Wood is correct and Bitcoin does reach $3.8 million by 2030, an investment of $1,000 would be worth over $60,000. This would result in a compound annual growth rate (CAGR) of over 100%. Read Next: Bitcoin has jumped another 45% already this year – how much would you need to get started today?
How much will 1 Bitcoin be worth in 2025? ›
Bitcoin (BTC) Price Prediction 2030
| Year | Price |
|---|
| 2024 | $ 64,292.57 |
| 2025 | $ 67,507.20 |
| 2026 | $ 70,882.56 |
| 2027 | $ 74,426.69 |
1 more rowAlthough Bitcoin and gold have similarities, Bitcoin's decentralization, security, and true finite supply make it the superior asset.
In the dynamic landscape of cryptocurrency, these ten coins, including TRON, Shiba Inu, Astar, Kaspa, Dogecoin, Stellar, Kava, Polygon, Cronos, and VeChain, present diverse potentials for reaching the $1 milestone in 2024.
Does crypto have a future? ›
Analysts estimate that the global cryptocurrency market will more than triple by 2030. This all leads to one big trend. Cryptocurrency, once only understood among a relatively fringe community of anti-establishment investors, is now becoming a household name – and quickly.
What is the downside of cryptocurrency? ›
The lack of key policies related to transactions serves as a major drawback of cryptocurrencies. The no refund or cancellation policy can be considered the default stance for transactions wrongly made across crypto wallets and each crypto stock exchange or app has its own rules.
Will crypto ever be valuable? ›
“I could potentially see Bitcoin to become the 21st century gold” Crypto-currencies' market cap of more than one trillion us dollars makes them too important to ignore. Marion Laboure, Analyst at Deutsche Bank Research, tells us how the development of digital currencies will shape the future of payments.
Is the crypto market dead? ›
Crypto as a technology and industry is far from dead. Prices may fluctuate widely, typical of any burgeoning industry and not every project will survive.
Will cryptocurrency go away? ›
Key Takeaways. Bitcoin, the cryptocurrency, is most likely to remain popular with speculators over the next decade. Bitcoin, the blockchain, will probably continue to be developed to address long-standing issues like scalability and security.
Does anyone actually use cryptocurrency? ›
Overall, 17% of U.S. adults say they have ever invested in, traded or used a cryptocurrency. This share is mostly unchanged from previous Center surveys conducted in 2021 and 2022. As was true in past surveys, younger men are more likely to use cryptocurrency compared with men 50 and older and women of any age.
