The investment bank and financial services institution Swiss Union Bank (UBS), based in Zurich, said that the price of BTC should reach approximately $ 213,000 to replace US money supply, Bloomberg reported on August 2.
According to Bloomberg, a new Swiss Union Bank report indicates that bitcoin can not be considered as viable cash or assets at present because its useability is hampered by the capacity constraints of the bitcoin network. The report says:
"Our findings indicate that bitcoin, in its current form, is unstable and limited to become a viable payment instrument for global transactions or a general asset class."
The report notes that while digital currencies can become an alternative asset class, their prices of bitcoin are likely to remain volatile. The volume of consumer goods used in trade has dropped significantly over the past year since its peak of $ 411 million in September 2017, according to a recent survey by market research firm Chinalys.
"When the price rose very quickly last year, in one day you could lose $ 1,000 if you spend it," said Kim Grewer, chief economist at Chinalysys.
"The digital currency is not really usable as a form of payment," said Nicholas Weaver, chief researcher at the International Institute of Computer Science, referring to high transaction fees as a major reason.
While the Swiss Federal Bank's report indicates that the efficiency of processing the bitcoin network must be greatly improved in order to be an effective payment method, some Pitcullen enthusiasts believe that the leading digital currency will become the only payment method in the world.