The Bank of America (BofA) said in a report that only $93 million is required to increase the price of Bitcoin by 1%. The comment was made in a report titled, “Bitcoin’s Dirty Little Secrets.” In the report published last week, the bank referred to Bitcoin as slow, volatile, and impractical.
The bank also compared the leading crypto asset to gold and 20-year-plus treasury bonds. According to the banking giant, unlike Bitcoin, gold needs $2 billion to move a single percentage, while 20-year-plus treasury bonds require $2.25 billion to increase by 1%.
The report highlighted:
“What has created the enormous upside pressure on Bitcoin prices in recent years particularly, in 2020? The simple answer: modest capital inflows.”
The firm also discussed the environmental impact of Bitcoin mining. Stating further, the BofA said Bitcoin does not serve as a store of value, nor does it have the ability to be a hedge against inflation.
The report explained:
“…the main portfolio argument for holding Bitcoin is not diversification, stable returns, or inflation protection, but rather sheer price appreciation, a factor that depends on Bitcoin demand outpacing supply.”
Explaining further in the report, the bank said that whales are significant contributors to the crypto market. BofA said that Bitcoin addresses with large volumes are still holding on to their assets.
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