Bloomberg 2 August quoted the words of the representatives of the Swiss financial holding Union Bank of Switzerland (UBS) that bitcoin will be able to replace the money supply of the United States, if will cost approximately $213 000.
In a new report, UBS States that bitcoin cannot be considered money or competitive asset since its performance is limited adaptability, the low power network. The document says:
The results of our study indicate that bitcoin in its current form is too unstable and limited to become a competitive currency in the global transaction or a popular asset class.
Although the digital currency could potentially become an alternative asset class, their prices are likely to remain volatile, experts write. According to the market analysis Chainalysis, last year the volume of bitcoins used in Commerce have significantly declined since a peak of $411 million in September 2011.
Commenting on the price volatility of the cryptocurrency markets, senior economist Chainalysis Kimberly Grauer said:
When last year saw a rapid growth of prices during the day, you could lose $1000.
Senior researcher International computer science Institute, Nicholas weaver told Bloomberg that the digital currency “actually usable” as a means of payment. In his opinion, the main obstacle are the high transaction fees.
Although the UBS report States that the ability of the bitcoin network to process transactions should be much improved, to this cryptocurrency has become an effective means of payment, some bitcoin followers believe that the leading digital currency will eventually become the only method of payment.
In March, the head of Twitter and payment service Square, Jack Dorsey stated that he sees bitcoin as the world’s sole currency of the future “perhaps in ten years, but maybe sooner.”
In response to repeated allegations that crypto currencies are a bubble, bill Miller, investor, billionaire and founder of hedge Fund Value Partners Miller, said in March:
Bubbles need to bring to market the capital to see whether these innovations to succeed.
In addition, he compared bitcoin with the historically known large investment.