The leading and most valuable cryptocurrency, Bitcoin, continues to headline the affairs of the Blockchain space. The digital asset, which is also the first cryptocurrency, is also the most valuable and remains the leading asset in the space since its inception. However, despite its astronomical successes, which had seen it become one of the most sought-after digital assets by investors who have flocked in large numbers into the cryptocurrency market, many are not impressed. The Bank of America has now joined the list of critics who do not have faith in the cryptocurrency, despite all its highs.
Bank of America believes Bitcoin is not a store of wealth
In the early days of Bitcoin, the digital asset faced criticisms from many prominent and influential business figures, who seemed not to appreciate the unstable nature of the asset. However, America’s second-largest Bank- Bank Of America, is now the latest to express their opinion on the digital assets, as they believe it is not worth the hype. In a recent release by the Bank to their customers, they believe that the asset is way too overhyped and is not even a good hedge against inflation as many claimed.
According to the note’s content, the Bank criticized the digital asset’s volatile nature, claiming that it would be a disaster to use it as a store of wealth. The Bank had also questioned the assets’ environmental implications, maintaining that mining the asset is taking its toll on power. The Bank believes that the high-risk nature of Bitcoin does not make it the ideal assets as claimed by many, as investors could lose all their funds at a glance. In the note, the Bank believes that the typical investor would not be doing anything close to Bitcoin, as it already appears that the asset is associated with too much risk, something investors are wary of.
Criticism does not bother many Bitcoin investors
The Bank also believes that Bitcoin mining is a very disruptive disadvantage of cryptocurrency. The process requires so much power and energy, and the Bank believes the economic impact of such action is detrimental to society. However, the criticisms of Bitcoin by the Bank of America have come as a shock to many crypto analysts who feel the Bank is exaggerating its concerns. The adoption of Bitcoin by many industry players like Banks and FinTechs has continued to be high; hence, this criticism is a shock to many.
However, the crypto space is used to receiving negative reviews about the digital assets, as many in the space believe, it is reverse psychology to attract more admirers. It is also worthy to note that many Bitcoin critics have either become investors or admirers in the past. However, the prestigious Bank’s words will not bother many, especially Bitcoin investors who have high hopes for the cryptocurrency as it continues to chase the $100K mark.