Swiss bank says Bitcoin is a "speculative bubble"

In an article published on his website, written by Paul Donovan, entitled 'Cryptocurrencies - Beneath the Bubble' that was published this week, UBS said:

We believe that the strong increase in the valuations of criptomonedas in the last months is a speculative bubble

The bank added that it was "doubtful that the criptomonedas would ever become a means of conventional exchange."

The need for businesses and individuals to pay government-issued tax receipts, and the provision of potentially unlimited encrypted money, are significant barriers to widespread adoption.

According to UBS, bubbles occur when there is something new, or relatively new, in the economy, creating uncertainty and a delay in real-world returns. He cites the bubble of Dutch tulips in the seventeenth century, the bubbles of Mississippi and South Sea in the eighteenth century and the bubble of the dot-coms in the 1990s. UBS believes that digital coins fall into the category of bubble.

Cryptomanes are relatively new. It is said that the benefits of the real world take years to materialize, even among evangelists. And the relatively high volume of cryptomoneda turnover versus limited use in the real world suggests that many buyers are looking for speculative profits, never with the intention of using cryptones to make a real-world transaction.

Earlier this month, Sergio Ermotti, CEO of UBS, said that wealthy investors are curious about the digital currency market, but are not prepared to make significant investments. The bank joins critics such as Jamie Dimon, CEO of JPMorgan, who said last month that Bitcoin was "a fraud".

Despite the fact that UBS does not seem to favor digital coins like Bitcoin, it sees in the block chain a more positive light.

So much so that UBS believes that the distributed ledger will generate a "significant impact" on industries such as finance, manufacturing, healthcare and utilities. UBS claims that this could add up to $ 300-400 billion worth of economic value by 2027. UBS said:

Investing in the Blockchain wave is similar to investing on the Internet in the mid-nineties. At the moment, however, deficiencies must be addressed with technology