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Bitcoin too ‘unstable’ to become mainstream money, says UBS

by Purvai Dua
3rd Aug 18 9:25 am

According to the global investment bank UBS, Bitcoin is neither money nor a viable asset class.

“Bitcoin is still too unstable and limited to become a viable means of payment or a mainstream asset class,” UBS strategist Joni Teves wrote in a note to clients, adding: “Owing to its lack of price stability, bitcoin falls short of criteria that need to be satisfied to be considered money.”

A new report by UBS also found that the digital currency needs to hit nearly $213,000 for it to remotely replace the US money supply. Among its biggest roadblocks are recent dramatic price swings and some technological limits, UBS added.

The virtual currency was trading near $7,500 yesterday and has fallen roughly 50 per cent in 2018.

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