Union Bank of Switzerland Says Bitcoin Should Hit $213,000 to Replace U.S. Dollar. A lot of Bitcoin investors and users are hoping the digital currency could possibly emerge as a global currency replacing the U.S Dollar in the near future. However, from studies conducted by IMF and other global agencies, cryptocurrencies still have little influence over the global economy, therefore, Bitcoin still have a long way to go.
According to report by Bloomberg on August 2, the Union Bank of Switzerland (UBS) based out of Zurich has stated for bitcoin to replace the U.S money supply, Bitcoin price should climb to $213,000 per token and above. According to report, UBS was quoted saying that currently Bitcoin can be considered as a currency or a viable asset class due to the limitations of its network. The Union Bank says:
“Our findings suggest that Bitcoin, in its current form, is too unstable and limited to become a viable means of payment for global transactions or a mainstream asset class.”
The report also notes that the Bitcoin network falls much short in terms of transaction processing abilities against existing giants like Visa Inc. and Mastercard. Moreover, the extremely volatile nature of Bitcoin and other digital currencies could hold them from potentially emerging as an alternative asset class.
Following the latest study from market-research firm Chainalysis, it’s also reported that there has been a reduction in the use of BTC in commerce transactions since last year in September 2017, when it was at its peak at $411 million. Nicholas Weaver, a senior researcher at the International Computer Science Institute told the publication that Bitcoin is “not actually usable” as a means of payment with its high transaction fees being one of the main reason.
Weaver also argued that the cost of Bitcoin transaction is “far more than a credit card transaction” and more importantly it cannot be reversed in instances of fraud. Notwithstanding, Bitcoin users still believe that it will emerge as the world’s single payment method one day. Twitter CEO Jack Dorsey also said that he hopes for Bitcoin to be the world’s native currency.
At the Consensus 2018 Conference in New York, Dorsey stated:
“The internet deserves a native currency; it will have a native currency. I don’t know if it’ll be Bitcoin or not. I hope it will be. It’s going to happen. We need to learn how to help make that happen.”
While commenting on the price volatility of Bitcoin, Kim Grauer – senior economist at Chainalysis said:
“When the price [was] going up so rapidly last year, in one day you could lose $1,000 if you spent it.”
In actual sense, bitcoin really have a long way to go in being a global currency. The continuous use of blockchain technology by different start-up companies could possibly place bitcoin in that position.