Bitcoin’s price may collapse to zero due to environmental issues - expert opinion
- Global experts shared their views at a panel discussion within the framework of Davos Forum.
- Most investors are less interested in cryptocurrency and focus on the underlying technology.
The World Economic Forum in Davos is an annual iconic event for the global business elite and financial authorities from all over the world. The creme de la creme of the global financial community gather in Switzerland to discuss various issues of the global economy. No wonder that Bitcoin and cryptocurrencies have not escaped their attention.
While most experts focus on the innovative features of the technology and its potential in terms of real-life use cases, some people call attention to environmental aspects.
Bitcoin has no place in the future due to its environmental impact, according to Jeff Schumacher, founder of BCG Digital Ventures.
"I do believe it will go to zero. I think it's a great technology, but I don't believe it's a currency. It's not based on anything,” he said during a CNBC-hosted panel in Davos.
Bitcoin is trading at $3,570, down 2.5% since the start of the year and over 67% on a year-over-year basis, but Schumacher believes that the price may go lower and even it zero.
As a matter of fact, many investors share the view that their primary focus is rather on the underlying technology than on the cryptocurrencies.
"I am much less interested in investing around bitcoin as a currency unit or a currency equivalent, or even the blockchain as an accounting ledger. I am thinking much more about the protocols. In other words, what is the underlying protocol going to do as a consequence of which, which tokens are valuable or not," Glenn Hutchins, co-founder of Silver Lake Partners commented during the same debate.
At the time of writing, BTC/USD is changing hands at $3,540. The price recovery is capped by $3,600 handle, which is regarded as the key for the short-term recovery.
Author
Tanya Abrosimova
Independent Analyst
