Bitcoin is Unstable and Limited to Work as Money says, UBS

Nishanth Shetty

August 3, 2018 1:49 pm

Bitcoin News

Bitcoin is Unstable and Limited to Work as Money says, UBS | Coindelite News
13558 Total Views

Investment Banking Giant UBS believes that bitcoin is neither money nor a variable asset class.

The firm’s assessment was highlighted in a research report on the world’s largest crypto by market capitalization which was distributed among clients and released on Thursday.

UBS’ report claims:

“Falls short of criteria that need to be satisfied to be considered money. Fixed supply and unusual demand dynamics make the system susceptible to high price volatility, in turn making it difficult for bitcoin to step into the role of money or to be a viable new asset class.”

The report argues if bitcoin can achieve scalability and regulatory support, it can become “a viable payment mechanism and/or a legitimate asset class in which even the most conservative and traditional investors can participate.”

Likewise, they note their plans to “keep on top of these developments,” as “many” see promise in cryptocurrency‘s underlying blockchain technology.

Similarly, the report has revealed its plan to keep the top of these developments,” as many believe in blockchain technology.

The research was the firm’s response to its investors, who see interests in cryptocurrency world.

The authors wrote in the Press Release:

“We have received many questions on the subject, which we hope to address in this educational piece.”

No Comments