"If you want to invest in these assets, okay, but be prepared to lose all your money,"  Bailey said to the public accounts committee (PAC) on Monday.

"People may still want to buy them because they have extrinsic value [...] people value things for personal reasons. But they don't have intrinsic value."

"This morning we have seen another blow-up in a crypto exchange," Bailey went on to say.

Bailey’s warning comes as Bitcoin and other cryptocurrencies continue to fall in price after crypto exchange Binance paused all withdrawals, citing “extreme market conditions.”

Bailey also told MPs on the PAC that artificial intelligence tools could potentially be used to create automatic control on cryptocurrencies that are deemed to be suspicious. 

Bitcoin hit an 18-month low, falling as much as 17% in under 24 hours to £18,540. The world’s biggest cryptocurrency is now down more than 49% this year.