The Central Bank of Europe warns of a devastating future for bitcoin and the rest of cryptocurrencies.
The Central Bank of Europe warned of a ‘last gasp’ for bitcoin , the leading cryptocurrency in this market.
In a blog post titled ” Bitcoin’s last stand “, published on its official European Union website, the entity launches a devastating takedown against the digital currency and warns that its demise could just begin.
He does not have faith
The Central Bank’s forecast is guided by the price of bitcoin , which exceeded 67 thousand dollars per unit in November 2021, but which in June 2022 had fallen drastically to less than a third.
According to the entity, the real problem with the crypto asset is that “it has no intrinsic value, has been used largely as a vehicle for speculation and is rarely used for legal transactions.”
“For bitcoin advocates , the apparent stabilization signals a breather on the road to new heights,” the post read. “However, it will most likely be an artificially induced last gasp before the road to irrelevance, and this was already foreseeable before FTX went bust and sent the bitcoin price well below $16K.”
Cryptocurrencies have gone through episodic crises this year that have caused their values to fall.
From the case of Luna , to the most recent of the FTX collapse , they sent bitcoin to values that made it regress years of advance in terms of its price.
“Since bitcoin does not appear to be suitable as a payment system or as a form of investment, it should not be treated as such in regulatory terms and therefore should not be legitimized,” the bank’s post read. “Similarly, the financial industry needs to be wary of the long-term harm of promoting bitcoin investments , despite the short-term gains they might reap.”