UBS: Bitcoin Has to Cost $213,000 to Replace USD
August 3, 2018
As the experts at Zurich investment bank, Union Bank of Switzerland, state, the Bitcoin cost will have to reach $213,000 to replace the US national currency.
Union Bank of Switzerland believes, Bitcoin today cannot be regarded as a means of payment or a solid asset. This is caused by lack of possibility or at least complexity for its universal use.
“Our findings suggest that Bitcoin, in its current form, is too unstable and limited to become a viable means of payment for global transactions or a mainstream asset class”.
The report states that although cryptocurrencies are quite likely to become an alternative for the existing kinds of assets, their prices are to remain volatile.
Thus, as Chainalysis data show, the volume of bitcoins involved in trade has significantly plumged since September 2017 with its peak of $411 million.
The company’s chief economist Kim Grauer told:
“When the price [was] going up so rapidly last year, in one day you could lose $1,000 if you spent it”.
According to the report, the efficiency of the network, blockchain and cryptocurrencies must be improved to become a payment means. Some crypto advocates believe even that the cryptocurrency is to become the one and only means of payment. Optimistic stance like this is also taken by the Twitter CEO Jack Dorsey who said that Bitcoin is to become the world’s only currency in the future which yet may take 10 years or so.
Among Wall Street investors similar ideas were voiced by Bill Miller, a multimillionaire, investor and founder of Miller Value Partners hedge fund. As he said:
“Bubbles are necessary to bring capital into the market to see if these innovations are actually going to stand”.
He called bitcoin the key invention of the mankind over the whole course of its history.