One of the world’s largest investment banks UBS Union Bank of Switzerland, said that the exchange rate for bitcoin should reach $213, 000 to match the amount with the money supply of the US to oust the U.S. dollar.
According to Bloomberg, in a new report, UBS reported that bitcoin currently cannot be considered a viable asset and unit of calculation.
“Our findings indicate that bitcoin, in its current form is too unstable and limited monetary tool and cannot be considered viable currency for payment, the more can not be compared with the global reserve currency.”
The report States that although the digital currency and potentially could become an alternative asset class, its price is probably still a long time will be unstable. UBS also points to a significant reduction in the volumes of bitcoins used for retail purchases. The peak of activity of users using bitcoin as a payment method, took place in September 2017, then the total bitcoin spending in retail stores was estimated at $411 million. Since then this figure has decreased almost six-fold and currently stands at approximately $60 million.
We will remind, the Director of the division strategic management of assets VanEck gábor Gurbux believes that the value of bitcoin to traditional investors lies in its ability to become an alternative to gold. Because traditional investors are considering bitcoin as “digital gold”, its capitalization can easily grow at least three times.