AdoptionBitcoin PriceCointelegraph.comCryptocurrenciesInvestments

Bank of America analyst slams Bitcoin : Buying 1 BTC is ‘like owning 60 cars’

It looks like 2017 called and wants its Bitcoin condemnation back, with a Bank of America analyst reheating some long standing criticisms of BTC for its clients.
Bank of America analyst Francisco Blanch has slammed Bitcoin as “exceptionally volatile”, “impractical” and an environmentally disastrous asset that’s useless as a store of wealth or an inflation hedge.For good measure Blanch also asserted the cryptocurrency is an impractical method of payment as it can only handle 1,400 transactions per hour compared to the 236 million transactions processed by Visa.The report — which echoes the hardline stance taken against crypto by traditional financial institutions in years past — is in stark contrast to other major banks such as Goldman Sachs and JPMorgan, which have since embraced Bitcoin as an asset.Contradicting the notion that Bitcoin’s fixed supply of 21 million will inevitably drive price growth over time, Blanch argues BTC’s price is driven by supply and demand — asserting that because the supply is fixed, fluctuating demand is the only thing driving the price.Blanch also dismissed the idea that Bitcoin is a safe haven asset. “Bitcoin has also become correlated to risk assets, it is not tied to inflation, and remains exceptionally volatile, making it impractical as a store of wealth or payments mechanism,” the Bank of America researcher stated.”As such, the main portfolio argument for holding Bitcoin is not diversification, stable returns, or inflation protection, but rather sheer price appreciation, a factor that depends on Bitcoin demand outpacing supply.”Given many investors are …
Story continues on Cointelegraph

Related posts
alamedaCointelegraph.comDerivativesEthereumthree arrowsvolatility

Volatility derivatives project Volmex Finance attracts backing from VC giants

Volatility derivatives are coming to DeFi with backing from several VC giants. A number of venture capital giants have completed a financing round for Ethereum-based volatility and derivatives protocol Volmex Finance.According to a March 17 announcement from Volmex Labs, the…

Everipedia (IQ) rallies 400% after an NFT collaboration with the Associated Press

Everipedia price spiked to its highest level in years following the project’s pivot toward NFT art. Non-fungible tokens (NFTs) continue to take the world by storm as evidenced by the March 16 announcement that Sotheby’s would be entering the NFT game…
AdoptionAltcoin WatchBasic Attention TokenBitcoin PriceCointelegraph.comFilecoinGrayscaleMarket UpdateMarkets

$60K Bitcoin price back in sight after Morgan Stanley and Fed announcements

Bitcoin bulls are making a renewed push toward $60,000 after the Federal Reserve and Morgan Stanley made announcements that could bode well for BTC price. Optimism returned across the cryptocurrency market on March 17 following a brighter economic forecast from…