Bank of America Corp (NYSE: BAC) faced some reaction from the crypto community earlier today, after its criticisms of Bitcoin in its latest research note made headlines.
What happened: The bank’s research note entitled “Bitcoin’s Dirty Little Secrets” stated that “there is no good reason to own Bitcoin unless you see prices going up”. According to the bank, Bitcoin’s volatility makes it impractical as a store of value or payment mechanism.
Why does it matter: The research note was not well received by the crypto community, which accessed Twitter to share its ideas on the subject.
Samson Mow, CSO of blockchain technology company Blockstream, shared a graph of Bank of America’s stock price over the years and said: “If your stonk graph looks like this, you can’t call Bitcoin volatile” .
If your stone chart looks like this, you cannot call #Bitcoin volatile. @Bank of America pic.twitter.com/nVpqlFhejY
– Samson Mow (@Excellion) March 19, 2021
The research note also stated that the central bank’s digital currencies (CBDCs) would be “kryptonite for cryptocurrency”, which most users described as the “worst opinion” on cryptocurrency they have ever heard.
Popular Bitcoin proponent Anthony Pompliano said on Twitter that Bank of America has a greater chance of failing than Bitcoin and was quickly supported by the majority of its 650,000 followers on the platform. CZ, CEO of the largest cryptocurrency exchange by volume Binance, suggested that it would not be just Bank of America, but all the banks that would go bankrupt before Bitcoin.
Bank of America has a greater chance of failing than Bitcoin.
– Pompa (@APompliano) March 17, 2021
The bank’s criticism, however, was appreciated by well-known Bitcoin critic Peter Schiff – According to him, the research report “concluded the obvious” and he went on to reiterate his belief that Bitcoin is the definitive bubble.
Bank of America’s position on Bitcoin comes at a time when large institutions and public companies are buying and keeping the digital asset on their balance sheets. Earlier this week, Morgan Stanley (NYSE: MS) said it would offer Bitcoin to its wealthy customers.
At the time of this writing, Bitcoin was trading at $ 58,500, an increase of 5% over the past 24 hours. With over $ 1 trillion in market capitalization, Bitcoin is bigger than JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc (NYSE: C) and Bank of America combined.
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