BANK OF KOREA CHIEF SAYS CRYPTO HAS NO INTRINSIC VALUE, EXPECTS VOLATILITY

The ongoing debate surrounding the true value and stability of cryptocurrencies has once again been ignited, this time by a prominent voice in the financial world. A top executive of South Korea financial regulator Lee Ju-yeol, who is the governor of South Korea s bank, has said that crypto like Bitcoin has no intrinsic value. He made this statementLee Ju-yeol, the Governor of the Bank of Korea (BOK), has publicly stated his skepticism regarding digital assets like Bitcoin, asserting that they possess no intrinsic value. 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.This declaration comes amidst significant fluctuations in the cryptocurrency market and growing concerns about the long-term viability of these digital currencies as investment vehicles.Ju-yeol's statement underscores the cautious approach that many central banks are taking toward crypto, particularly in light of its volatile nature and the potential risks it poses to financial stability. Bank of Korea Governor Lee Ju-yeol has expressed skepticism over the recent crypto rally, stating that the bank is progressing with a digital currency projectThis stance isn't isolated. Bank of Korea chief says crypto has no intrinsic value, expects volatility PANews ｜ 0:47 Bank of Korea Governor Lee Ju-yeol has expressed skepticism over the recent crypto rally, stating that the bank is progressing with a digital currency project.Other financial leaders, like JPMorgan Chase chief Jamie Dimon, have echoed similar sentiments, further fueling the conversation about the legitimacy and sustainability of the crypto market.While the future of cryptocurrencies remains uncertain, the Bank of Korea's perspective highlights the importance of understanding the risks involved and exercising caution when engaging with these digital assets. JPMorgan Chase chief Jamie Dimon doesn t think people should smoke or buy Bitcoin. Bitcoin itself has no intrinsic value, Dimon said in an interview with CBS News Sunday. It sUnderstanding the viewpoints of global financial leaders can help investors and enthusiasts alike to navigate this complex landscape with greater awareness and make more informed decisions.

Lee Ju-yeol's Stance on Cryptocurrency Value

Lee Ju-yeol's recent remarks, delivered at a parliamentary session, reiterated his long-held view that cryptocurrencies, particularly Bitcoin, lack intrinsic value. The Bank of Korea chief Lee Ju-yeol also touched on the price fluctuation and volatility aspects of cryptocurrenciesHe emphasized that this lack of inherent worth makes them susceptible to extreme price swings and increased volatility. The chief of the Reserve Bank of India (RBI) on Monday said that cryptocurrencies have no underlying value. He said this as a justification for the current crash in the crypto market. The RBI Governor also reminded the people how he frequently warned them against cryptocurrencies throughout theThis perspective challenges the narrative promoted by some crypto enthusiasts who argue that Bitcoin's limited supply and decentralized nature give it inherent value as a store of value, similar to gold. 6 Wednesday November 2025. About; Advertise; Submit Press Release; Contact Us; News. Bitcoin News. Bitcoin News; Bitcoin Cash News; Bitcoin SV NewsThe BOK chief's statement directly contradicts this argument, suggesting that the price of Bitcoin is primarily driven by speculation and market sentiment rather than any fundamental economic factors.

He further elaborated by explaining that intrinsic value is a measure of what an asset is actually worth, based on fundamental factors like its utility, scarcity, or the income it generates.Traditional assets like stocks represent ownership in a company that generates profits, while bonds represent debt that pays interest.Real estate provides shelter and can generate rental income. Since the Breton Woods agreement fell by the wayside and currency is no longer backed by gold (which in itself has minimal intrinsic value to the layman who cant forge useful things) we are literally trading bits of paper for the food and shelter we need to live.According to Lee, Bitcoin and other cryptocurrencies don't possess these fundamental characteristics, making their valuation highly speculative.

Anticipated Price Volatility in the Crypto Market

Beyond the lack of intrinsic value, Lee Ju-yeol expressed his expectation of increased price volatility in the cryptocurrency market. BTCUSD Bitcoin Bank of Korea chief says crypto has no intrinsic value, expects volatility Bank of Korea Governor Lee Ju-yeol has expressed skepticism over the recent crypto rally, stating thatThis forecast is based on the understanding that assets without a solid foundation are more prone to dramatic price swings driven by market sentiment, news events, and regulatory changes. Bitcoin and other cryptos have no intrinsic value and their volatile price swings will likely intensify, according to the head of the Bank of Korea (BOK).This volatility can be both a source of opportunity for savvy traders and a significant risk for inexperienced investors.The governor referenced the inherent speculative nature of these assets as the source of price fluctuations and urged caution. There is no intrinsic value in crypto assets, said BOK Gov. Lee Ju-yeol at a parliamentary session on 23 February. The news report quoted lawmakers asking BOK s chief if the recent surge in the price of BTC is temporary or not.This aligns with statements from other financial experts who have also warned of the risks associated with investing in highly volatile assets.

Several factors contribute to the volatility of the crypto market:

• Market Sentiment: Crypto prices are highly sensitive to news and social media trends.
• Regulatory Uncertainty: Changes in regulations can significantly impact the value of cryptocurrencies.
• Limited Liquidity: Some cryptocurrencies have relatively low trading volumes, which can exacerbate price swings.
• Hacking and Security Breaches: Security incidents can erode investor confidence and lead to price declines.

The Bank of Korea's Digital Currency Project

While expressing skepticism about existing cryptocurrencies, Lee Ju-yeol also revealed that the Bank of Korea is actively working on its own digital currency project.This initiative reflects a growing interest among central banks worldwide in exploring the potential benefits of digital currencies, such as increased efficiency in payment systems and reduced reliance on cash.However, the BOK's approach to digital currencies is fundamentally different from that of cryptocurrencies like Bitcoin. The head of the Bank of Korea (BoK), Lee Ju-yeol, recently put forward the argument that cryptocurrencies don t hold any intrinsic value The governor of the bank of Korea, Lee Ju-yeol, has set forth that Bitcoin and other cryptocurrencies have no inherent value. Ju-yeol went on to say that while that was the case, he MoreThe BOK's digital currency would be a central bank digital currency (CBDC), issued and controlled by the central bank, providing stability and security. Cryptocurrencies such as Bitcoin have no intrinsic value, and their price swings are expected to experience greater volatility, the head of the Bank of Korea (BOK) said Tuesday. There is no intrinsic value in crypto assets, BOK Gov. Lee Ju-yeol told lawmakers.This contrasts sharply with the decentralized and often unregulated nature of cryptocurrencies.

The BOK's digital currency project aims to:

• Improve the efficiency and security of payment systems.
• Reduce the costs associated with cash transactions.
• Enhance financial inclusion by providing access to digital payments for underserved populations.
• Maintain monetary sovereignty in the face of growing interest in cryptocurrencies.

CBDCs vs. Amid a major dip in the crypto market, Bank of Korea Governor, Lee Ju-yeol has expressed skepticism over the recent 'Bitcoin Has No Intrinsic Value, Volatility Is Inevitable' Bank Of Korea Chief He cited several reasons that led bitcoin to become a $1 trillion asset, he gave an instance of massive concern of global investors leading to theCryptocurrencies: Key Differences

It is important to differentiate between CBDCs and decentralized cryptocurrencies. No dejes de leer: Corea del Sur aplaza el impuesto del 20% sobre las ganancias de Bitcoin y criptomonedas hasta 2025; El Banco de Corea publica un libro sobre las cuestiones jur dicas de su moneda digital del banco central; Huobi Korea obtiene la certificaci n de la Agencia de Seguridad e Internet de CoreaCBDCs are centralized and controlled by a central authority, whereas cryptocurrencies leverage distributed ledger technologies for transactions and validation.This fundamental difference implies a significant impact on privacy, security, and the overall financial system.

• Control: CBDCs are controlled by central banks, while cryptocurrencies are decentralized.
• Regulation: CBDCs are subject to government regulation, while cryptocurrencies are often unregulated.
• Volatility: CBDCs are designed to be stable, while cryptocurrencies are highly volatile.
• Privacy: CBDCs may offer limited privacy, while some cryptocurrencies offer greater anonymity.

Global Perspectives on Cryptocurrency Valuation

Lee Ju-yeol's view on the lack of intrinsic value in cryptocurrencies is not unique. Bank of Korea Governor Lee Ju-yeol said that crypto assets like Bitcoin have no intrinsic value, local news agency Yonhap reports Tuesday. The official said that he expects more price swingsMany other financial experts and policymakers share this perspective. 16K subscribers in the CryptoCurrencyClassic community. The unofficial Wild Wild West of r/CryptoCurrency. CryptoCurrency Memes, News andFor instance, the chief of the Reserve Bank of India (RBI) has also stated that cryptocurrencies have no underlying value, using this as justification for market corrections.Similarly, JPMorgan Chase chief Jamie Dimon has expressed skepticism about Bitcoin, arguing that it lacks intrinsic value and advising against investing in it. Bank of Korea chief says crypto has no intrinsic value, expects volatilityThese viewpoints highlight a broader concern among financial leaders about the risks associated with cryptocurrencies.

However, it's important to note that there are also dissenting opinions.Some argue that Bitcoin's scarcity, its role as a decentralized store of value, and its potential to disrupt traditional financial systems give it inherent value.Proponents also point to the increasing adoption of Bitcoin by institutional investors as evidence of its growing legitimacy.

The Impact of Regulations on Cryptocurrency Markets

Regulatory developments play a significant role in shaping the cryptocurrency market. Posted by u/ChemicalGreek - 113 votes and 125 commentsThe uncertainty surrounding regulations can contribute to price volatility, as investors react to news about potential restrictions or approvals.For instance, stricter regulations on cryptocurrency exchanges could reduce liquidity and increase compliance costs, potentially leading to price declines. Durante la recente correzione del mercato crypto, il presidente della banca centrale sudcoreana si detto scettico sulle valute digitali come Bitcoin (). Il governatore della Bank of Korea, Lee Ju-yeol, ha affermato che i crypto asset come Bitcoin non hanno alcun valore intrinseco, stando al report pubblicato marted dalla testata locale Yonha.Conversely, regulatory clarity and the adoption of cryptocurrencies by mainstream financial institutions could boost investor confidence and drive prices higher.

Examples of regulatory impact include:

• China's ban on cryptocurrency trading and mining: This led to a sharp decline in Bitcoin's price.
• The SEC's approval of Bitcoin ETFs in the US: This boosted investor confidence and drove prices higher.
• South Korea's postponed tax on cryptocurrency gains: This development provided some relief to the market, though it remains temporary.

Understanding Intrinsic Value: A Deeper Dive

The concept of intrinsic value is crucial to understanding the debate surrounding cryptocurrencies.In traditional finance, intrinsic value refers to the fundamental worth of an asset, based on factors such as its earning potential, assets, and liabilities.For example, the intrinsic value of a stock is typically determined by analyzing a company's financial statements and forecasting its future earnings.Similarly, the intrinsic value of a bond is determined by its credit rating, interest rate, and maturity date.

However, determining the intrinsic value of cryptocurrencies is challenging because they lack the traditional characteristics of assets.Cryptocurrencies do not generate earnings, they do not have assets or liabilities, and their value is not tied to any underlying economic activity.Instead, their value is primarily determined by supply and demand, which can be influenced by a variety of factors, including market sentiment, regulatory developments, and technological innovations.

Different Perspectives on Intrinsic Value

The definition and application of intrinsic value can vary depending on the perspective.For example, some argue that Bitcoin's scarcity, its decentralized nature, and its potential to disrupt traditional financial systems give it inherent value, even if it doesn't generate earnings or have assets and liabilities. 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. Speaking in the National Assembly on Feb. 23, Lee forecast that bitcoin (BTC) will see increased price swings going forward, the local news agency Yonhap reported .This perspective emphasizes the potential for Bitcoin to become a new form of money or a store of value, similar to gold.

Others argue that Bitcoin's value is purely speculative and that it is essentially a ""greater fool"" theory, where investors are willing to pay increasingly higher prices for an asset with the expectation that they will be able to sell it to someone else at an even higher price.This perspective highlights the risks associated with investing in cryptocurrencies and emphasizes the importance of caution.

Navigating the Cryptocurrency Market: Tips for Investors

Given the volatility and uncertainty surrounding the cryptocurrency market, it is crucial for investors to exercise caution and conduct thorough research before investing.Here are some tips for navigating the crypto market:

1. Do Your Research: Understand the technology, the team, and the potential risks and rewards of any cryptocurrency before investing.
2. Diversify Your Portfolio: Don't put all your eggs in one basket.Diversify your investments across different asset classes, including stocks, bonds, and real estate.
3. Invest Only What You Can Afford to Lose: The cryptocurrency market is highly volatile, and there is a risk of losing your entire investment.
4. Use a Secure Wallet: Protect your cryptocurrency holdings by using a secure wallet with strong encryption and two-factor authentication.
5. Stay Informed: Keep up-to-date with the latest news and developments in the cryptocurrency market.

The Future of Cryptocurrencies: What to Expect

The future of cryptocurrencies remains uncertain.While some predict that cryptocurrencies will become mainstream and revolutionize the financial system, others believe that they are a bubble that will eventually burst.The reality is likely somewhere in between.Cryptocurrencies are likely to play an increasingly important role in the financial system, but they will also face significant challenges, including regulatory scrutiny, technological competition, and market volatility.

Several factors will influence the future of cryptocurrencies:

• Regulatory Developments: Clear and consistent regulations will be crucial for the long-term growth of the cryptocurrency market.
• Technological Innovation: Continued innovation in blockchain technology and cryptocurrency applications will be essential for attracting new users and investors.
• Institutional Adoption: Increased adoption of cryptocurrencies by mainstream financial institutions will help to legitimize the market and reduce volatility.
• Competition from CBDCs: The development and adoption of CBDCs could pose a challenge to cryptocurrencies, as they offer similar benefits with greater stability and security.

The Role of Central Banks in the Digital Currency Landscape

Central banks are increasingly playing a pivotal role in the digital currency landscape.Their exploration and potential implementation of CBDCs represent a significant shift in how money could be managed and transacted in the future.While these initiatives are separate from decentralized cryptocurrencies, they both contribute to the ongoing evolution of the financial system.

Central banks are also grappling with the regulation of cryptocurrencies, aiming to balance innovation with the need to protect investors and maintain financial stability. Lee Ju-yeol, the Bank of Korea Governor has voiced his skepticism over digital assets like Bitcoin. While disclosing that his bank was working on a digital currency project, the head of SouthThe approaches vary across countries, but the overarching goal is to create a framework that fosters responsible innovation while mitigating potential risks.

Addressing Common Questions About Cryptocurrency Value

Many people have questions about the value of cryptocurrencies.Here are some common questions and answers:

Q: What gives Bitcoin its value?

A: Bitcoin's value is primarily driven by supply and demand, market sentiment, and its potential to disrupt traditional financial systems.Some argue its limited supply and decentralized nature contribute to its value proposition.

Q: Is cryptocurrency a good investment?

A: Cryptocurrency investments are highly speculative and carry significant risks.It is important to conduct thorough research, diversify your portfolio, and only invest what you can afford to lose.

Q: Are central bank digital currencies (CBDCs) the same as cryptocurrencies?

A: No.CBDCs are issued and controlled by central banks, while cryptocurrencies are decentralized.CBDCs are designed to be stable and regulated, while cryptocurrencies are volatile and often unregulated.

Conclusion: Key Takeaways on Cryptocurrency Value and Volatility

In conclusion, the Bank of Korea's assertion that cryptocurrencies lack intrinsic value and are prone to increased volatility underscores the importance of caution and informed decision-making in the crypto market.While cryptocurrencies may offer potential opportunities for profit, they also carry significant risks.Investors should conduct thorough research, understand the technology, and only invest what they can afford to lose.As central banks continue to explore digital currencies and regulations evolve, the future of cryptocurrencies remains uncertain.It is important to stay informed and adapt to the changing landscape.The key takeaways are:

• Cryptocurrencies, according to the Bank of Korea, lack intrinsic value, making them susceptible to volatility.
• The BOK is developing its own digital currency project.
• Regulatory developments will continue to shape the cryptocurrency market.
• Investors should exercise caution and conduct thorough research before investing in cryptocurrencies.

Ultimately, understanding the arguments surrounding intrinsic value and potential volatility is essential for anyone considering investing in the crypto space.Being informed empowers you to make sound decisions and navigate the market with a clearer understanding of the risks involved.