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The recent depreciation in Bitcoin has reinforced concerns about the cryptocurrency's position as a safe asset.
Goldman Sachs said it is too early to rely on it as a long-term storage of value, pointing out serious risks, which includes competition from other cryptocurrencies, its massive energy consumption and lack of use cases.
Bitcoin's recent fall from $ 65,000 to below $ 50,000 also suggests that it is more like copper than gold.
Fortunately, Bitcoin has recovered and is back on trading above $ 54,000. But other cryptocurrencies have already surpassed it. For example, Ethereum, which is currently trading at an all-time high.
Accordingly, this contradicts the argument that Bitcoin is the dominant cryptocurrency, and raises concerns about the popular belief that it is digital gold.
Another concern is its environmental impact because according to calculations, Bitcoin's energy consumption exceeds the annual consumption in Argentina.
The lack of use cases also puts pressure on Bitcoin as a long-term storage of value. Real use is very important because real demand can correct fluctuations in investment demand.
In short, since Bitcoin has no use cases, it can drop down to zero.
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