Bitcoin's momentum will see an ugly end as regulation kicks in and countries are no longer about to ignore its huge carbon footprint, an investment adviser says
Bitcoinprices will come crashing down due to two major risks, one investmentadvisor said.
- Threat of regulation and impact on the climate will burst its bubble, Stephen Isaacs told CNBC.
- "This is a very dirty product, and it's getting dirtier by the minute," he said.
Bitcoin has ushered in a movement hailed by investors for its ability to decentralize the financial system.
But one investment advisor just highlighted two key factors that pose big risks to bitcoin's momentum: the threat of regulation and its impact on the climate.The world's most popular
"I don't know where it will end, or how it will end, but it will end," he said. "And when it ends, it will be ugly, because there will be nothing there."Isaacs further added that bitcoin's energy usage will be its downfall "if anybody's serious about climate change."
"This is a very dirty product, and it's getting dirtier by the minute, because the amount of energy that is required to mine additional supply is going up," he said.Analysis by Cambridge University shows bitcoin consumes more electricity annually than the whole of Argentina, BBC reported in February. Energy consumption is said to have a linear relationship with its price. Read more: The growth lead at crypto exchange Kraken breaks down how Bitcoin's price might hit $1 million by the end of the year - and how Gen Z and millennials are driving Dogecoin's explosive rally
Research by Bank of America shows each $1 billion in inflows is equivalent to the same amount of energy used by 1.2 million cars. Conversely, digital currencies proposed by central banks are believed to not have the same negative impact.
Isaacs said the currency is rising in value because of speculation and a "buy-everything" inflationary environment, but it has no fundamentals, or intrinsic value."It's almost a victim of its own success, that if this product allows the transfer of vast amounts of money between individuals who have complete anonymity, it goes against a whole generation of regulation," he said.
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