Bitcoin must get $ 213,000 to replace the US money supply

The Bank of Switzerland (UBS), a banking and financial services company in Zurich, said that the price of Bitcoin (BTC) must touch almost $ 213,000 to replace the US money supply, Bloomberg has reported on 2 August.

According to Bloomberg, a new UBS report suggests that BTC can not currently be considered as money or a viable resource as its versatility is hampered by the capacity constraints of the BTC network. The report says:

"Our results suggest that Bitcoin, in its current form, is too unstable and limited to becoming a lucrative means of payment for global transactions or a class of mainstream assets."

The report states that while digital currencies can potentially become an alternative asset class, their prices may remain volatile. The volume of BTC used in the trade declined significantly during the last year from its peak of $ 411 million in September 2017, according to a recent survey by the market research firm Chainalysis.

Regarding price volatility in encrypted markets, senior economist Chainalysis Kim Grauer said. "When the price [was] went up so quickly last year, in one day you could lose $ 1,000 if you had spent it."

A senior researcher at the International Computer Science Institute, Nicholas Weaver, told Bloomberg that the digital currency is "not actually usable" as a form of payment, citing high transaction fees as the main reason.

While the UBS report states that the processing efficiency of the BTC network must improve significantly to be an effective form of payment, some BTC evangelists believe that the leading digital currency will become the single payment method at the world.

In March, the CEO of Twitter and the payment service Square, Jack Dorsey, said that it is BTC as the world's single currency of the future, whose appearance will require "probably more than ten years, but it could go faster."

In response to many Wall Street investors' concerns that cryptocurrencies are a bubble, Bill Miller, multi The billionaire investor and founder of the hedge fund Miller Value Partners, said in March that "the bubbles they are necessary to bring capital to market to see if these innovations will actually be valid "and compared BTC with important inventions throughout history. [19659010] window.fbAsyncInit = function () {FB.init ({appId: & # 39; 1922752334671725 & # 39 ;, xfbml: true, version: & # 39; v2.9 & # 39;}); FB.AppEvents.logPageView (); }; (function (d, s, id) {var js, fjs = d.getElementsByTagName (s) [0]; if (d.getElementById (id)) {return;} js = d.createElement (s); js.id = id; js.src = "http://connect.facebook.net/en_US/sdk.js"; fjs.parentNode.insertBefore (js, fjs);} (document, & # 39; script & # 39 ;, & # 39; facebook-jssdk & # 39;)); Source link