Swiss investment Bank UBS are sure bitcoin is neither money nor a viable asset class — at least not yet.
Yesterday strategic business unit of UBS Group AG has presented its clients a new research report, according to the findings which the leading cryptocurrency “does not meet the criteria necessary to be considered money.”
“Limited supply and unusual demand causes the exposure of the system to the high volatility of the exchange rate, in turn creating difficulties to the bitcoin can fulfil the role of money or be a viable asset class”, — the document says.
However, the authors do not exclude that one day bitcoin might begin to satisfy these requirements. According to experts UBS, if the leading cryptocurrency can achieve the required level of scalability and support of regulators, eventually it could become “an acceptable payment mechanism and/or a legitimate asset class with which you will be able to work even the most conservative and traditional investors.”
The findings presented in the report, based on a comparison of bitcoin with the “macroeconomic indicators” and its matching “the various classes of assets.” In particular, does not once mention the provider of online payments PayPal: a potential “spread” of cryptocurrency may be due to the growing popularity of online payments.
As noted by UBS, yesterday’s report was a response from the Bank to its investors who are increasingly interested in a “new form of money.”
“We have received many questions on this subject, which we hope to answer in this training material,” the document says.
It is worth noting that the Bank is not the first time demonstrates the restrained attitude of cryptocurrencies: last year, in another report the organization of the cryptocurrency was called “speculative bubble”. Then, the main argument has been a sharp growth rate.
However, on the other hand, the same document stated that: “the blockchain is likely to have a significant impact” on a variety of industries.
In this sense, the new report confirmed the findings of previous. Despite the criticism, the leading cryptocurrency, highlighting the Bank’s plans “to be at the forefront of these changes”: the technology underlying the cryptocurrency is considered as promising.
Recall, the investment Bank actively explores the blockchain, in parallel developing own cryptotoken, which was first announced in 2015. Moreover, in April in conjunction with IBM, the Bank announced the successful testing of its own blockchain platform Batavia, and in June, the CEO of UBS Sergio Ermotti (Sergio Ermotti) stated that blockchain is “practically necessary for business.”
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