The price of Bitcoin was artificially stabilized at around $20,000 before the FTX collapse. This was already foreseeable before the fallout of the crypto exchange. BTC went to a two-year low of under $16,000 after the FTX collapse.
2. Bitcoin transactions are cumbersome, slow, and expensive. Bitcoin has never been used to any significant extent for legal real-world transactions. Bitcoin’s price cycles are comparable to speculative bubbles.
3. Bitcoin has repeatedly benefited from waves of new investors. Bitcoin should not be legitimized as it is neither an effective payment system nor a form of investment. Financial institutions should be wary of promoting Bitcoin investments.
