Bitcoin and the cryptocurrency craze is soaring, but government’s are not jumping on the bitcoin bandwagon just yet and could even ban the digital currencies, Mike Bell, global market strategist at JPMorgan Asset Management warned. 

Speaking to Bloomberg, he said: “I think that’s the main problem with it.

“If you’re trying to avoid the government, ultimately it’s under threat from huge regularity risk because there’s concern around money laundering and everything else.

“I think there’s a big risk from government’s banning these currencies eventually.” 

Bell warned that investors should be cautious about investing in cryptocurrency. 

He said: “I just think that investors should be very cautious looking these cryptocurrencies.

“You need to distinguish the technology underlying them in blockchain and these cryptocurrencies which, unless they actually have some claim on a business, and are some kind of equities stake, are for all intents and purposes very hard to value .

“I think it would be very unwise to put any money that you can’t afford to lose into these currencies.” 

Bell is not the first expert to warn against jumping too quickly on the bitcoin bandwagon. 

Luke Hickmore, senior investment manager at Aberdeen Standard Investment warned that cryptocurrencies are not something to gamble with. 

Speaking to Bloomberg, he said: “I still think it’s too high. It’s a useful technology, it’s a difficult to value asset. 

“I would happily see this down at $1,000 instead of $11,000.”

“Don’t go chasing bitcoin to get your gambling habit sorted today, don’t go chasing bitcoin if you’re investing long-term.”

Bitcoin fell 12.24 percent to $11,922.57 at 13:36 in London, according to CoinDesk.com

Ripple dropped 14.46 percent to $1.43 at 13:37 in London and ethereum was down 12.64 percent to $1,127.51 at 13:37 in London