Cryptocurrencies have emerged as a global phenomenon, drawing the attention of investors, economists, and governments. As the popularity of digital currencies pleases Bitcoin BTC/USD And ether ETH/USD has skyrocketed, some experts question its long-term impact on the global economy.

Quote Charles Kindlebergers “Manias, Panics and Crashes” (who partially studies the cryptocurrency market as a mania) and author Robert McCauleyassume that cryptocurrency is “the most speculative commodity ever invented by the human mind” Dieter WormwoodEconomist and partner at Wermuth Asset Management said on Wednesday Notice to Investors that several European Central Bank economists have raised concerns about the long-term implications of cryptocurrencies.

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Economists have argued that cryptos are not a viable alternative to regular money, but rather an asset without substance, a get-rich-quick scheme for insiders, and a haven for money launderers, tax evaders, and other dubious figures. Additionally, economists have pointed to the massive energy consumption of data centers that power the crypto ecosystem, which in turn has contributed to climate change.

Despite the initial narrative that bitcoin is a better and more stable currency than traditional money, Wermuth said the cryptocurrency has proven insufficient to perform money’s three essential functions: as a means of payment, a unit of account, and a store of value.

Bitcoin’s volatility, slow and expensive transaction processes, and limited acceptance as a form of payment inherently make it a poor substitute for traditional fiat currencies, he added.

Bitcoin is particularly poor as a store of value, Wermuth explained. It has no inherent value, no interest payments, and no promise of repayment of purchase price or face value. This makes it impossible to have a “fair”…