Bank of AmericaBitcoinBusiness

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

Related posts
BitcoinBitcoin.comBTCCanadianCanadian CondoCanadian Condo CompanyCondoscryptocurrencyHoward UlmerLisa KramerNewsReginareservesSaskatchewanThornton PlaceThornton Place Condominium CorporationTreasurerTreasury

Canadian Condo Company Invests in Bitcoin, Hopes to Become ‘Self-Sustaining Real Estate’

A few months ago a trend started where well known businesses like Microstrategy, Square, and Tesla started adding bitcoin to their company balance sheets. Now a Canadian condominium company has decided to invest in bitcoin in order to replace some…

This On-Chain Metric Says Bitcoin Risk Is The Highest In Three Years

Bitcoin price is trading well above $58,000 currently and is arguably only just beginning its bullish impulse. Prices are expected to reach hundreds of thousands per coin, and while few deny that outcome, it might not arrive as soon as…
AA NewsBitcoinbitcoin etfBrazilBTCEURBTCGBPbtcusdBTCUSDTCanadaCrypto NewsSocial

Brazil’s Securities Regulator Approved the First-Ever Bitcoin ETF in Latin America

It appears that 2021 is the year for Bitcoin ETF approvals as yet another exchange-traded fund tracking the performance of the first-ever cryptocurrency will emerge – this time, in Brazil. The country’s Securities and Exchange Commission (CVM) has given its…