SinaUS stocks news Beijing time on December 1, UBSThe chief economist at UBS Gobal Wealth Management said that the cryptocurrency is coming to an end and it is time to abandon the digital currency.
UBS analyst Paul Donovan has never been a fan of cryptocurrency. He wrote earlier this week: "I am going to bury Bitcoin, not to praise it."
He said on Thursday, "These things will never become money. They will not become money at any time in the future. They have fatal flaws."
Bitcoin was loved by many people during the 2017 holiday season, when it began to rebound to nearly $20,000. But Donovan was skeptical at the time, warning that in the long run, this could be "destructive."
In an interview, he said: "From the beginning of the interest rate hike at the end of last year, it is clear that for some people who have not received any regulatory protection and are involved in the process of raising interest rates, this will be a bad ending."
After Bitcoin peaked, the current transaction price fell to $4,330. Overall, the cryptocurrency market has lost about $700 billion since it reached its high point in January.
Donovan believes that cryptocurrencies may be in a “dying struggle” because losing 80% of the value “is unhealthy”. He said that the government is one of the "major obstacles" to Bitcoin. He added that the idea of replacing the US dollar with a digital currency "is a considerable leap."
He said: "The main problem with these things - the absolute fundamental flaw - is that they will never be a means of value storage. Every economist knows that value storage is about balance between supply and demand, and using cryptocurrencies. You can't control the supply when demand drops."