ECB officials are confident: bitcoin is on the verge of “losing relevance” and its last gasp was already visible on the horizon before the FTX crash, writes Business Insider.

Bitcoin was nearing a dead end even before the collapse of Sam Bankman Fried’s FTX, as its technological shortcomings make it a questionable means of payment and transactions using it are slow.

BTC’s recent surge is likely an “artificial last gasp before it becomes irrelevant.” As a reminder, the price of BTC has recently hovered around $20k after falling earlier this year to $17k from a yearly high of $69k.

Bitcoin’s mixed reputation is based on the fact that this cryptocurrency is mostly not used for legal purposes in the real world, is not suitable as an investment as it does not generate cash flow or dividends, cannot be used as productively as commodities, and does not have social benefits like gold.

Bitcoin’s value is based solely on speculation and fueled by hype from large investors and lobbyists.

In late 2020, individual companies began promoting BTC at corporate expense. Some venture capital firms are also still heavily invested in it. However, at the same time, ECB representatives noted that the world’s largest cryptocurrency by market capitalization poses a reputational risk to banks.