Bitcoin News: Eva Ados, COO and chief investment strategist at ERShares, said in a recent interview with Bloomberg that Bitcoin will not “continue to be the leader” of the cryptocurrency market and is not a wise choice for investors. Ados believes it is wrong to compare Bitcoin to standard currencies or gold given its highly volatile nature.
“Bitcoin is too volatile to be a currency”
“It is not a digital currency,” Ados said, referring to Bitcoin’s 30% drop in one day.
“With this volatility, you probably can’t have a mainstream digital currency. It’s also not a store of value. You cannot have an alternative volatility to gold.
In addition, Ados compared Bitcoin to stocks sold at artificially inflated values. “The more supply you have, the lower the value of each cryptocurrency, including Bitcoin,” Ados said.
When asked for a less volatile crypto option, she suggested Ether, citing smart contract technology and because it’s “better for the environment.” Ados said,
“Bitcoin is the opposite of ESG. BTC has recently come under scrutiny for the negative environmental impact of its mining activity.”
Also, Ados believes the possibility of upcoming SEC regulation is very high. “We expect the arrangement to happen soon,” she said. The upcoming regulation by the Federal Reserve, along with the promise of a white paper on central bank digital currency (CBDC) this summer, will lead to increased volatility in crypto markets, he said. “Therefore, we will not be buyers of any cryptocurrency at this point,” Ados said.