Global investment bank Goldman Sachs is questioning whether bitcoin can be a long-term store of value and digital gold.
Goldman Sachs published a note outlining some problems with bitcoin as digital gold on Wednesday.
As for bitcoin’s environmental impact, the analysts wrote that there are concerns about the cryptocurrency’s electricity consumption used in the mining process, citing research from Cambridge University showing that it uses more energy each year than Argentina.
A growing number of people, however, believe that bitcoin is a great store of value that can be used as a hedge against inflation, including the pro-bitcoin U.S.
Meanwhile, Goldman Sachs has brought back its bitcoin trading desk and is planning to launch a “full spectrum” of crypto investment products.
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On April 21, the bitcoin mining rig manufacturer Canaan announced the firm will be supplying 11,760 next-generation A1246 ASIC Avalonminers to a company called Mawson Infrastructure Group.