Bitcoin is down after its worst weekly slump in nearly a year, and at a glance, the longer-term outlook could be even worse due to environmental concerns and tightened regulations.

The tremendous amount of energy required to mine Bitcoin and the prospect that governments will create more barriers to the largest cryptocurrency suggests that the token will “lose most of its value over time” said BCA Research Inc ..

The cost and slowness of Bitcoin transactions make it “unsuitable as a medium of exchange,” wrote Peter Berezin, chief global strategist of BCA Research, in the report published on Friday Bitcoin due to the high energy consumption of miners in computer networks.

Bitcoin is still up more than five times over the past year, a divisive rally that sees believers in a new asset class battle naysayers who see a speculative bubble. Notable recent developments include Tesla Inc.’s purchase of the token, valued at $ 1.5 billion. At the same time, Microsoft Corp. co-founder Bill Gates and Treasury Secretary Janet Yellen are signaling caution.

Governments will create more barriers because, according to the BCA, they could lose billions of dollars in revenue to seigniorage – the difference between the face value of money and the cost of making it.

“A lot of companies have grown used to Bitcoin to interface with the technological mystery of digital currency,” added BCA’s Berezin. “If ESG funds flee Bitcoin, the price will start a downward spiral. Stay away.”

Bitcoin, the largest cryptocurrency, rose 2.5% to $ 46,359 at 11:53 a.m. in Hong Kong on Monday. That puts it well below the record high of $ 58,350 that was set a little over a week ago.

JPMorgan Chase & Co. strategists said in a statement on Friday that the launch of the exchange-traded Purpose Bitcoin fund may also affect the price of the cryptocurrency. After the initial “strong starting currents” had calmed down, strategists led by Nikolaos Panigirtzoglou wrote: The four-week pace of the flows into all Bitcoin funds was weak compared to a high in December.

The Grayscale Bitcoin Trust, the largest traded crypto fund, also remains one of the keys to the outlook. Inflows into confidence are ceasing and the money flowing into other Bitcoin vehicles is not “strong enough to prevent a general slowdown in the Bitcoin fund flow pulse,” the strategists wrote.

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