{"id":39145,"date":"2021-03-18T13:21:02","date_gmt":"2021-03-18T11:21:02","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=39145"},"modified":"2025-08-30T08:08:45","modified_gmt":"2025-08-30T05:08:45","slug":"bank-of-america-bitcoins-only-value-is-its-price-rise","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bank-of-america-bitcoins-only-value-is-its-price-rise\/","title":{"rendered":"Bank of America: Bitcoin\u2019s only value is its price rise"},"content":{"rendered":"

Bitcoin is useless as a store of value or a means of payment. The only reason to own the first cryptocurrency is its rising price, writes<\/a> Cointelegraph, citing a Bank of America analyst’s report.<\/p>\n

One of the authors of the report “Bitcoin\u2019s dirty little secrets” [Bitcoin\u2019s dirty little secrets] Francesco Blanch noted that Bitcoin cannot serve as a safe-haven asset, because it is not tied to inflation and is highly volatile.<\/p>\n

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“The main argument in favor of holding bitcoins is not diversification, stable returns, or inflation protection, but rather pure price appreciation \u2014 a factor that depends on demand for Bitcoin outpacing supply,” Blanch says.<\/p>\n<\/blockquote>\n

He noted that about 95% of Bitcoin is held by holders of 2.4% of wallets \u2014 a potential obstacle to broad cryptocurrency adoption.<\/p>\n

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“The fact that the majority of bitcoins are held in such a small number of accounts makes this instrument impractical as a payment mechanism or investment vehicle.”<\/p>\n<\/blockquote>\n

Among other obstacles to wide Bitcoin adoption, Bank of America cites the low transaction speed of the payment network and the high energy consumption of mining farms.<\/p>\n

Analysts estimate that cryptocurrency production emits around 60 million tonnes of carbon dioxide annually, and each Bitcoin purchase of $1 billion is equivalent to the annual emissions of 1.2 million cars.<\/p>\n

Analysts did not rule out that in the future Bitcoin could face competition from central banks developing own digital currencies<\/a>.<\/p>\n

Bank of America also expressed concerns about Bitcoin’s high volatility relative to foreign currencies, gold, and silver.<\/p>\n

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“Even after ten years on the market and serious episodes of price appreciation, Bitcoin has not achieved any definite price stability,” the report says.<\/p>\n<\/blockquote>\n

As reported by Bank of America, a December 2020 survey of asset managers found that the Bitcoin long position<\/a> was among the top market themes.<\/p>\n

Subscribe to ForkLog’s channel on YouTube<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin is useless as a store of value or a payment instrument. The only reason to own the first cryptocurrency is its rising price, Cointelegraph reports citing Bank of America analysts’ report.<\/p>\n","protected":false},"author":1,"featured_media":39146,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[2027,167],"class_list":["post-39145","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bank-of-america","tag-research"],"aioseo_notices":[],"amp_enabled":true,"views":"16","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/39145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=39145"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/39145\/revisions"}],"predecessor-version":[{"id":39147,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/39145\/revisions\/39147"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/39146"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=39145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=39145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=39145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}