The Bitcoin price must hit nearly $213,000 to replace US money supply, according to a report by UBS.
This argues that the cryptocurrency cannot currently be considered money or a viable asset as it is hamstrung by the capacity constraints of the BTC network. The report 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.”
Bullish on blockchain
In June, Coin River reported UBS Group CEO Sergio Ermotti’s comments that blockchain was “definitely an opportunity” in the long-term and “almost a must” for all businesses around the world.
Ermotti added that, “The freeing up of resources to become more efficient will come through technology and blockchain is a great way to allow us to reduce costs. Our industry will continue to be under pressure, in terms of gross margins.”
The Swiss financial services giant has partnered with other banks and IBM to experiment with a blockchain-based global trade finance platform called Batavia. In April, UBS conducted its first live cross-border transactions with corporate clients.
Ermotti also predicted that transforming the cost base of the industry will happen in five to ten years and stated that blockchain technology “will be as crucial and disruptive as regulation was in the last ten years.”
In October, during an interview with CNBC, Ermotti said he was far more bullish about blockchain than cryptocurrencies and warned that Bitcoin was trapped inside a “speculative bubble.”