Andrew Bailey, governor of the Depository financial institution of England, has warned crypto investors of the dangers of participating in the market.

Speaking during a conference on Thursday, Bailey balked at the notion of "cryptocurrencies," stating that "crypto avails" was a more suitable nomenclature for describing digital currencies.

The BoE governor espoused well-worn anti-crypto rhetoric, specifically the argument that cryptocurrencies lacked intrinsic value. "I would only emphasize what I've said quite a few times in contempo years, [and] I'g afraid they have no intrinsic value," Bailey added.

Delivering his stark warning to crypto investors, Bailey said:

"I'm sorry, I'thou going to say this very bluntly once again: Buy them simply if you lot're prepared to lose all your money."

The BoE governor's remarks acquit a close resemblance to statements issued by the U.k.'due south Financial Acquit Potency. Every bit previously reported by Cointelegraph, the FCA warned the British public of the take a chance of incurring huge losses from crypto investments back in January.

At the time, the crypto marketplace was in the throes of a pregnant correction every bit Bitcoin (BTC) dipped beneath $33,000. Since then, the total crypto market capitalization has grown almost three-fold and is currently in a higher place $two.3 trillion.

Bailey's comments are coming amid a massive fasten in crypto prices, particularly for altcoins, with Ether (ETH) setting a new all-fourth dimension loftier. Major altcoins such every bit Polkadot'southward DOT, Chainlink's LINK and XRP have also seen vertical price actions.

The BoE governor touched on the electric current mania despite the credible lack of intrinsic value, adding: "Now that doesn't mean to say people don't put value on them, considering they can have extrinsic value."

Indeed, Dogecoin (DOGE), arguably the quintessential "meme coin," is upward more than 12,700% year-to-date.

While the BoE governor might not recollect much of the value proposition of crypto, the country'due south tax authority is not neglecting the possibility of valuable digital currencies being used to evade taxes.

Back in April, Her Majesty'due south Revenue and Customs announced plans to upscale its policing of would-be cryptocurrency tax evaders in a manner reminiscent of the Us Internal Revenue Service's "crypto question."