The remarks are timely, with the crypto industry reeling from one of its most catastrophic failures in recent history: the downfall of FTX.
Andrea Ronchini | NurPhoto via Getty Imageson Wednesday, saying the cryptocurrency is on a "road to irrelevance."titled "Bitcoin’s last stand," ECB Director General Ulrich Bindseil and Analyst Jürgen Schaff said that, for bitcoin's proponents, the apparent stabilization in its price this week "signals a breather on the way to new heights.
Bindseil and Schaff said that bitcoin didn't fit the mold of an investment and wasn't suitable as a means of payment, either. "Bitcoin is also not suitable as an investment. It does not generate cash flow or dividends , cannot be used productively or provide social benefits . The market valuation of Bitcoin is therefore based purely on speculation," they added.
They also raised concerns with bitcoin's poor environmental credentials. The cryptocurrency's technical underpinnings are such that it requires a massive amount of computing power in order to verify and approve new transactions. Ethereum, the network behind bitcoin rival, recently transitioned to a new framework that backers say would cut its energy consumption by more than 99%.
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