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5 Key Takeaways From Bank of America’s Bitcoin Report 

While Citibank praised Bitcoin’s potential, analysts at Bank of America published a damning indictment of the biggest cryptocurrency.
They do, however, see much more promise in DeFi.
Bank of America Bearish on Bitcoin
Central Bank Digital Currencies Will Replace Bitcoin
Several central banks are actively working on CBDC, with countries such as China and the UAE even preparing inter-operability between their national digital currencies. Bank of America described the move as “defending their territory from cryptocurrencies,” suggesting that CBDCs would quickly replace private cryptocurrencies whose use could be restricted.
After heavy restrictions, BoA adds that citizens will turn to CBDCs as they provide users with governmental backing and a far less volatile asset.
Bitcoin Is Still Too Volatile
According to Bank of America, Bitcoin should have already reached maturity as an asset. As witnessed during last March’s Covid crash, the massive swings in value suggest that Bitcoin can’t be a store of value.
The firm writes that Bitcoin’s volatility is higher than forex, gold, or silver and shows no sign of slowing down as 2021 is the second most volatile year to date.
Bitcoin Is an Environmental Disaster
The price of Bitcoin is directly correlated to its energy consumption, BoA analysts argue. “Should prices rise to $1mn, Bitcoin may turn into the world’s 5th largest emitter, surpassing Japan.”
This is a very debatable claim as the truth about the environmental impact of Bitcoin is much more complex and not as directly correlated to price.
Whales Dominate …
Story continues on Crypto Briefing

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