Bitcoin Should Cost $213,000 To Be Considered Full Value Asset: UBS
The representatives of Union Bank of Switzerland (UBS) believe that bitcoin cannot yet become a competitive monetary asset. The first cryptocurrency must reach a price of at least $213,000 in order to displace the fiat currencies on the market.
The Swiss bank conducted a research of the cryptocurrency with the biggest capitalization. The published report reveals that bitcoin does not meet the criteria of the monetary asset due to its volatility and technical limitations of the network.
Nevertheless, the analysts believe that in case bitcoin regulates its scalability and gets regulatory support, it will have increased chances of becoming a rightful asset class.
It is also necessary to resolve the issue of price volatility, according to UBS. The bitcoin's price varies within a few hundred dollars a day. The Chainalysis's research has shown that the use of bitcoins in commercial activities has declined sharply over the past year from $410 million to $60 million. The price instability may lead to losses, the analysts warn.
Besides, the BTC price should be $213,000 to compete with the US dollar and other fiat currencies, according to the UBS's report. However, the bank representatives doubt that bitcoin can repeat last year's success, when BTC cost exceeded $20,000 in December 2017.
As previously reported, a well-known economist predicted the collapse of bitcoin.