In a recent tweet, Lawrence McDonald, a Lehman Brothers veteran, argues that Bitcoin, the world’s largest cryptocurrency, has likely destroyed “far more” wealth than it managed to create.
He believes that Bitcoin cannot actually serve as a viable store of value due to “unbearable” drawdowns.
While cryptocurrency proponents always tend to point to Bitcoin’s stellar returns over the past 10 years, McDonald is convinced that no one has actually held the largest cryptocurrency for such a long period of time.do “Do you believe in flying elephants too?” he tweeted.
The cryptocurrency is down 75.72% from its all-time high that was achieved in November 2021.
Last month, he tweeted that Bitcoin continues to be anything but an inflation hedge.
Bitcoin has been persistently marketed as a store of value by the proponents of the largest cryptocurrency. However, it has been performing as a typical tech stock in 2022, losing most of its value due to the U.S. Federal Reserve's monetary tightening policy.
As reported by U.Today, banking giant Goldman Sachs recently predicted that gold would outperform Bitcoin, arguing that the lustrous metal is a much better store of value. The bank argued that the value proposition of the largest cryptocurrency was based purely on speculative trading. Furthermore, it pointed to the fact that the largest cryptocurrency was trading with other risky assets.