Paul Donovan, the global chief economist at Switzerland-based UBS Wealth Management, believes Bitcoin (BTC) may be on its death throes following its near 80% correction in 2018, which Donovan calls “not healthy.”
UBS on the fall in Bitcoin: There is some good news. The time, effort and electricity that built the bubble can now be used to do something useful. Giving money to cryptocurrency creators was not useful. Getting skilled people to do something useful boosts the economy. @crypto pic.twitter.com/cOY42JwlHW
— Julie VerHage (@julieverhage) November 28, 2018
In a screenshot of a recently circulated blog post titled, “I come to bury Bitcoin, not to praise it,” Donovan has some choice words for Bitcoin, going as far as calling it an evil bubble while blasting those behind its development as sapping valuable talent from the economy.
Economists said from the start that Bitcoin and the like would never be currencies. They never will be currencies. Their designers are brilliant at maths. Their designers appear to know nothing about economics. Real value comes from matchmaking supply and demand.
This post matches what UBS strategist previously stated in a report last August.
[Bitcoin] 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.
BTC is currently up 2.5% to $4,343, giving the largest cryptocurrency a $75.5 billion market cap and making it roughly 54% of the $139.7 billion crypto market.
Photo: thetaxhaven / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.