While some choose to support it, such as Tesla, Bank of New York Mellon, Mastercard or Goldman, many others continue to be very skeptical about bitcoin. Nicolás López, director of analysis at Singular Bank, told Bolsamanía a few days ago that they do not recommend investing in cryptocurrency because they consider that it does not offer sufficient guarantees, and the managers of AXA Invesment Managers believe the same, that They also warn of how much electricity is consumed in bitcoin 'mining', which makes it a not at all 'green' asset.
"The continuous 'mining' of bitcoin generates an enormous consumption of electricity that is incompatible with the requirements of responsible investment. On the environmental side, bitcoin is anything but 'green'. The carbon intensity of bitcoin 'mining' – and therefore its effect on the environment – is, to say the least, significant ", underlines Vincent Vinatier, AXA IM manager.
Several studies have criticized the negative externalities of crypto asset 'mining' and have questioned the sustainability of these practices. Actually, about 900 new bitcoins are created every 24 hours. What they are minted by computers, it requires a huge amount of energy. According to research from the University of Cambridge, bitcoin consumes more electricity per year than all of Argentina.
Microsoft co-founder Bill Gates himself recently stated that bitcoin consumes a worrying amount of energy. "Bitcoin uses more electricity per transaction than any other method known to mankindSo it's not something that is environmentally friendly, "he told CNBC's Andrew Ross in a Clubhouse session broadcast live.
"WE ARE NOT SUPPORTERS OF CRYPTOCURRENCIES IN GENERAL"
In addition to its not very ecological character, Vinatier considers that bitcoin is not an 'invertible' asset and therefore not suitable for basic investment portfolios. "There are no cash flows, no residual value, no use value, and it is too volatile to be used as a means of payment," he says. According to AXA, bitcoin is a "speculative asset that could be worth $ 10 or $ 10 million."
Bitcoin is a "speculative asset that could be worth $ 10 or $ 10 million"
The interest aroused by bitcoin In recent times it is undeniably motivated by its recent strong rises and the support it is receiving, but from AXA they consider that when inflation begins to rise and interest rates recover, Investors are likely to be able to get a decent return on other assets and the appetite for bitcoin and other cryptos will shrink.
"Where we are most positive is in blockchain technology, as it has promising applications, such as currency trading. We also expect 'official' digital currencies to materialize in the coming years. The European Central Bank, the Federal Reserve and the People's Bank of China, among others, are studying this. But these are the so-called 'stablecoins', which are backed by hard assets and therefore are a world away from bitcoin.”Concludes Vincent Vinatier.