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  • Fri, Aug 3, 2018 UBS releases evaluation report: Bitcoin is not yet a viable asset or currency


    Recently, UBS released a report on the evaluation of Bitcoin, which believes that Bitcoin is currently neither a currency nor a viable asset class. The report, published by the UBS strategist, concluded that “bitcoin does not meet the criteria that can be considered a currency, and the fixed supply and unstable dynamic demand make the price of Bitcoin highly volatile. This makes it difficult for Bitcoin to play the role of currency, and it is also difficult to be a new type of viable asset class."

    On the other hand, the report does not rule out the possibility that Bitcoin will implement related functions in the future. The report pointed out that if Bitcoin can achieve scalability and regulatory support, it may one day “become a viable payment method and a legal asset class, so that even the most conservative and traditional investors can Participate in it.” At the same time, UBS said that because many people are optimistic about the blockchain technology in Bitcoin, it will continue to follow the development of Bitcoin. The research report is also a response to investors who are interested in cryptocurrency. “We have received a lot of questions about this topic before, and we hope to explain it to users in this article.”

    The author compares Bitcoin based on "macro variables and the performance of various other asset classes" and compares Bitcoin with online payment provider PayPpal in many aspects. It is concluded that the scalability of Bitcoin is its The future will surpass one of the advantages of current online payment methods. This is not the first time UBS has been cautious about cryptocurrencies. In a report released in 2017, the cryptocurrency market rose sharply at the time. The bank announced the cryptocurrency as a "speculative bubble." However, the bank is optimistic about the blockchain and believes that “blockchain technology may have an important impact on various industries”.