As major financial institutions from the United States started leaning towards the cryptocurrency industry, the same was expected of Bank of America. Although there were reports that the Bank of America was initially interested in cryptocurrencies, yet the financial giant has proven all these speculations wrong.
Just yesterday, one of the leading analysts from the Bank of America was seen slamming the general idea of Bitcoin (BTC). The analyst completely slammed Bitcoin (BTC) for being a highly volatile, unreliable, and insecure asset for investment. He stated that out of all the investments, Bitcoin (BTC) is one of the most useless assets that can be used for wasting money.
He also criticized how Bitcoin (BTC) is limited to only 1,400 transactions per hour, comparing it with transactions of Visa that currently processes millions of transactions in a single hour.
Now the infamous Bank of America has come up with yet another statement that is adding up to the slamming that was done by BOA’s analyst from March 18, 2021.
The Bank of America has further added that it is extremely easy to move the price of Bitcoin by one percent. As per the claim, only $93 million worth of transaction inflows are required that would eventually cause the price of Bitcoin (BTC) to move by the said figure.
The statement from the Bank of America suggested that the price of Bitcoin (BTC) is extremely sensitive to the increase in the demand for the dollar.
The note from Bank of America also suggested the same for the price of gold. However, for gold, the transaction inflow was extremely higher than that of Bitcoin (BTC).
The note from Bank of America suggested that in order to move the price of gold by one percentage, all there was required was to make an investment of at least $2 billion.
On the other hand, the same maneuver can be practiced to move the price of bonds by one percent. However, in the case of bonds, the investment required would be more than $2.25 billion.
As per the analysis, although the market capitalization of Bitcoin (BTC) is now over $1.1 trillion, yet the asset is too volatile as compared to gold, which is extremely stable.
The research suggests that even after an entire decade, Bitcoin (BTC) is still struggling to gain stability. As long as Bitcoin (BTC) is volatile, no matter how high it grows in price, there would always be risk and uncertainty among the investors.
This is the reason why it would never be able to achieve the heights that the investors expect it to reach. On the other hand, gold has always been the leading commodity and would always remain one, due to the trust and reputation it has gained over the years.