Bitcoin Seems to Be Heading Down the “Road to Irrelevance”

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A year ago, Bitcoin fever was raging, and the hype surrounding it went beyond the fact that it was a hot investment favored by young people reaping triple-digit gains. Financial experts have touted cryptocurrency as the future of monetary transactions, poised to compete with the dollar as legal tender for business, personal, and government payments.

Some government officials have also caught Bitcoin fever. In November 2021, newly elected New York Mayor Eric Adams said he would take his first three paychecks in Bitcoin and promised the city would become the center of the cryptocurrency industry. Earlier that year, Miami Mayor Francis Suarez said he was considering paying city employees in Bitcoin and even investing some of the city’s treasury in cryptocurrency.

But now the fever is gone. Bitcoin has lost 70% of its value, and after the dramatic collapse of cryptocurrency exchange FTX, the entire crypto industry is reeling. So what about those predictions that Bitcoin would become legal tender?

In a new blog post on the European Central Bank’s website, one of the mainstream monetary watchdogs, crypto fans believed Bitcoin would supplant cryptocurrency, has been declared dead as legal tender. Noting that bitcoin has never been used in any meaningful way for legal transactions in the real world, the blog stated that cryptocurrency was neither suitable as a payment system nor a form of investment and concluded that she was on the way to irrelevance.

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