Bank of Korea Governor Lee Ju-yeol has said that crypto assets like bitcoin have no intrinsic value – put simply, a measure of what an asset is actually worth.
● “It is very difficult to predict the price, but its price will be extremely volatile,” said the bank chief in response to a question from a lawmaker who wanted to know whether bitcoin’s recent bull run, where its price reached a record high above $58,000, was temporary.
● Lee also spoke about the possible reasons supporting bitcoin’s recent rally. He believes that rising corporate interest in BTC, as well as concerns over looming excessive inflation due to too much fiat money printing by world governments, has given the crypto a leg up.
● “These assets saw a steep rise in the shortest period of time. I would say institutional investors’ assessment of using bitcoins as a hedge could be interpreted as another factor,” he explained.
● The central bank governor also revealed that the “bank is close to completing our review of designs and relevant technologies regarding bank-controlled digital currencies,” according to a separate report by The Korea Times.
● Bitcoin slumped more than 17% to under $48,000 on Feb. 22 after U.S. Treasury Secretary Janet Yellen criticized the top cryptocurrency as an “extremely inefficient way of conducting transactions.”