UBS strategist: Bitcoin is too unstable to be money or a new asset class

Deniz Kılınç / İstanbul, August 3 (DHA) – Zurich based leading finance company UBS has claimed that Bitcoin is not a new type of money or an asset class.
UBS’s global macro strategist Joni Teves has stated in a note to clients that Bitcoin is “currently too unstable and limited to become a viable means of payment for global transactions or a mainstream asset class” and added:
“Owing to its lack of price stability, Bitcoin falls short of criteria that need to be satisfied to be considered money.”
According to Teves, aside from price fluctations, Bitcoin also has scalability problems associated with the size of blocks (packages of transactions that are processed) and money supply.
Teves continued:
“Putting Bitcoin’s limitations into context, in order to match US M1 money supply, Bitcoin’s price would need to be around 212,992 dollars.
“To process Visa’s 30 billion dollars of Daily transactions using the old core protocol, the block size would need to be 18,8 megabytes instead of 1 megabytes or the price would have to be around 187,611 dollars.”
While Teves is critical on th current state of Bitcoin, she says the perspective surrounding Bitcoin and the related technologies may change in the future. Teves:
“Like new technologies that have been introduced throughout history, it is possible that it is just a matter of time before Bitcoin or some form of it is adopted on a larger scale.”