Bitcoin volatility slammed by Bank of America analyst

By: Michael Wilson

March 18, 2021 5:31 PM

Bitcoin has long been criticized for its volatile nature after the 2017 crypto market crash. An analysts from Bank of America has reopened the heating criticism of BTC.

Francisco Blanch a Bank of America analyst has condemned bitcoin as extremely volatile calling the asset "environmental disastrous" which is useless as a store of wealth or to hedge against inflation.

Blanch was also quick to criticize bitcoin as an ineffective method of payment as the flagship crypto can only oversee 1,400 transactions per hour which is way less when compared to Visa or Mastercard.

However, major bank such as JPMorgan and Goldman Sachs have recently announced its plans to support bitcoin with increasing number of their client interested in investing in the flagship crypto asset. Which is in contrast to the hard stance taken on bitcoin by major financial players in the past.

Bitcoin 21 million fixed supply has made analyst to bank on the crypto asset as a safe haven asset. Many have predicted major price growth as the inevitable increase in demand for bitcoin soars.

Blanch argued that the crypto asset is only moved by supply and demand. He further dismissed the notion that BTC is a safe haven asset.

The Bank of America analyst said:

"BTC remains an incredibly volatile asset, which has made it ineffective as a means of storing wealth or a payment tool."

At the moment talks of Bitcoin using so much energy are beginning to resurface which could have a negative impact on the environment with increased emmision of CO2. This may pose a serious threat to institutional adoption. Although, bitcoiners suggest 50-70% of bitcoin mining uses renewable energy.

Blanch also said that 181 firms associated with bitcoin could be faced with the risk linked to the crypto asset such as money laundering, fraud and corruption, sighting that the proposed CBDC also pose long term threats to BTC.