The remarks from the ECB officials are timely, with the crypto industry reeling from one of its most catastrophic failures in recent history the downfall of FTX, an exchange once valued at $32 billion. And the market has been largely down in the dumps this year amid higher interest rates from the Federal Reserve.
Bindseil and Schaff said that bitcoin didnt fit the mold of an investment and wasnt suitable as a means of payment, either.
Bitcoins conceptual design and technological shortcomings make it questionable as a means of payment: real Bitcoin transactions are cumbersome, slow and expensive, they wrote. Bitcoin has never been used to any significant extent for legal real-world transactions.
Bitcoin is also not suitable as an investment. It does not generate cash flow (like real estate) or dividends (like equities), cannot be used productively (like commodities) or provide social benefits (like gold). The market valuation of Bitcoin is therefore based purely on speculation, they added.
www.cnbc.com/2022/11/30/...is-on-the-road-to-irrelevance.html