Financial Giant UBS Says Bitcoin (BTC) Could Replace US Dollar
Swiss banking giant UBS says Bitcoin has a legitimate shot at replacing fiat currency.
In a new 34-page report, the firm says the leading cryptocurrency is a contender for replacing the US dollar if its price or its network capacity reaches a certain level.
According to Bloomberg, the report states that in order for “Bitcoin to replace U.S. money supply — paper bills, coins, travelers’ checks and the like — it’s price could need to hit nearly $213,000, or its network’s processing capabilities would need to dramatically improve.”
The report notes that Bitcoin’s volatility is likely to continue for the foreseeable future, and that it’s not yet a viable asset.
“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 amount of Bitcoin being used by real-world merchant processing services has dropped. In September, the amount of Bitcoin being used in commerce hit a high of $411 million. That number dropped to $60 million in May, according to research that startup Chainalysis Inc.
The price of Bitcoin is $7,567 at time of publishing, down from a recent high of $8,404 on July 24th.
Join us on Telegram
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin or cryptocurrency. Your transfers and trades are at your own risk. Any losses you may incur are your responsibility. Please note that The Daily Hodl participates in affiliate marketing.
Check Out the Latest Headlines
Leave a Comment