Since cryptocurrencies and blockchain technology are newer in front of the world, the skepticism regarding them is quite normal.
Recently, The Wall Street Journal organized an event where Jon Cunliffe, an official at the Bank of England, stated his opinion regarding the use of cryptocurrencies and digital assets that retail investors, in general, do not have any real understanding of cryptocurrencies. He added that cryptocurrency buyers could make losses or lose all their hard-earned money since digital assets are volatile and highly speculative.
Such often repeated warnings are significantly relevant that followed after the collapse of the Terra network protocol. The native token of Terra network, LUNA, has plunged to almost zero in just a matter of days making its investors quite poor.
The Bank of England official believes that such digital assets have no fundamental value because they fluctuate, dependent on market sentiment. He also added that cryptocurrencies and digital assets could not be actually considered as any financial investment made by retail investors.
Cunliffe has added that these digital assets and cryptocurrencies should be seen and treated as risky assets and securities. The market capitalization of total cryptocurrency currently stands at about $1.28 trillion.
Such statements from any financial field expert might not have been a surprise as there were so many instances where people often considered either scam or some untrustable asset class. They are often seen to suggest to the middle class or average income class society that retail investors should treat them as risky assets and should be away from them in terms of the market.
Every now and then, bank personnel or even official statements of these financial institutions across the world criticize the whole digital assets and cryptocurrencies available in the crypto space. Some of them have asked authorities to put a ban on them, while some consider putting them under strict regulations.
Source: https://www.thecoinrepublic.com/2022/05/18/why-does-an-official-at-the-bank-of-england-think-that-crypto-isnt-understandable-to-retail-investors/