Pedestrians cross the road in front of the Bank of Korea headquarters in central Seoul. Photo: AFP

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).

“There is no intrinsic value in crypto assets,” BOK Governor Lee Ju-yeol told lawmakers, adding that the recent price surges are a temporary phenomenon, local news outlet Yonhap reports. 

“It is very difficult to predict the price, but its price will be extremely volatile.”

Lee said the recent crypto rally – bitcoin soared to nearly $59,000 (65 million won) before correcting – was attributable to factors including mass bitcoin purchases by Elon Musk’s Tesla and institutional investors turning to the digital asset as a hedge against currency debasement.

“These assets saw a steep rise in the shortest period of time,” Lee said. “I would say institutional investors’ assessment of using bitcoins as a hedge could be interpreted as another factor.”