Bank warns: Bitcoin could soon be “worthless”

Deepak Gupta
Deepak Gupta December 17, 2021
Updated 2021/12/17 at 9:32 PM

Bitcoin (BTC) is still by far the strongest cryptocurrency on the market. For a few weeks now, however, the course has been moving downwards. In the past month alone it fell Bitcoin rate by more than 27 percent. The asset is currently valued at around $ 49,000. For comparison: the coin only reached its all-time high at around USD 67,500 at the beginning of November.

Bitcoin price: downward trend continues

Quite a few analysts assume that Bitcoin could recover before the end of the year. Occasionally, forecasts made by the Dutch crypto analyst PlanB in the middle of the year give rise to this assumption. Based on the Stock to Flow (S2F) model, he had declared that the Bitcoin rate would break the USD 100,000 mark in December. In the meantime, however, this goal seems to have moved into the unattainable distance.

If you believe the former hedge fund manager Michael “Mike” Novogratz, the asset will fall even further. “$ 42,000 is a pretty important level, and the low 40s should hold,” he said recently in an interview with financial magazine Bloomberg. The Bitcoin price last fell to such a level in December of this year.

Bank of England warns of “worthless” Bitcoin

In the past, Novogratz has held the presidency of the Fortress Investment Group, Goldman Sachs and the New York Federal Reserve’s Investment Advisory Committee on Financial Markets. He later founded Galaxy Digital Holdings and is still one of the most important voices in the crypto industry today. However, he is by no means the only person who expects Bitcoin to fall even deeper.

In the last one, Sir Jon Cunliffe, the Deputy Governor of the Bank of England, warned of the risks associated with crypto investments. “Their price can fluctuate a lot, and [Bitcoins] could theoretically or practically go to zero, ”he told the BBC.

Thomas Belsham, an employee in the Stakeholder and Media Engagement department at the bank, also joins him.

“The problem is that unlike traditional forms of money, Bitcoin is not used to value things other than yourself. As bitcoiners like to say, ‘one bitcoin = one bitcoin’. But a tautology does not make a currency. “

Thomas Belsham (via The Guardian)

According to Belsham, the shortage of Bitcoin is one of the main reasons for its attractiveness. But this feature, which is embedded in its design, could “ultimately even make Bitcoin worthless”.

Sources: Bloomberg; The Guardian; BBC

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