The statement came as the world’s largest cryptocurrency lost over 25 percent of its value this week.
The real value of bitcoin could “be zero,” Morgan Stanley stated amid the recent turmoil in the crypto markets.
The banking giant’s researchers James Faucette and his team noted that if bitcoin is not accepted as a rival to the US dollar and other fiat currencies, than it is literally worth nothing.
To prove their statement, researchers referred to their chart of online retailers who recognized bitcoin, claiming that it has “virtually no acceptance, and [its usage is] shrinking.”
According to the analysts, the cryptocurrency can’t be valued like a normal currency, as there is no interest rate associated with bitcoin.
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It is also not comparable with gold, as it doesn’t have any intrinsic use like the precious metal has, for example, in jewelry.
The cryptocurrency market had experienced a string of losses this past week, culminating in a nosedive on Friday, December 22, with Bitcoin falling below $11,000.
After the drastic downturn, Bitcoin recovered to over $13,000, but the price remains volatile.