The Swiss banking giant is out with some unkind words for Bitcoiners, calling it “the bubble to end all bubbles”, in an absolute old man screed that would make Clint Eastwood proud.
“The bubble to end all bubbles continues. Cryptocurrencies only have value if accepted as currencies. However, they cannot be used for the most important transaction in an economy, and cryptocurrency supply can only rise and never fall (making them a poor store of value),” global chief economist Paul Donovan wrote in a post Monday. “To date, using cryptocurrencies requires (effectively) a simultaneous asset sale and purchase of goods or services.”
While I have never been a fan of the cryptos as a currency, they are an asset class and that’s the point that many are missing. While you might not be able to buy milk and eggs with BTC now, that’s sort of the bullish argument for the asset. If I wanted to, right now, I could accept payment for iBankCoin services with Bitcoin. I only opt not to because I am slothful in that regard. The BTC would auto convert to dollars and I’d get paid immediately, as opposed to normal settlements that usually take 1-5 days using PayPal or Stripe.
BTC and other cryptos have risen too much too fast; but it’s certainly fun to watch and I’ve finally come to grips with that fact: I am a fan of asset classes and enjoy seeing how people value them. Bitcoin, Ethereum are no different than stocks in this regard.If you enjoy the content at iBankCoin, please follow us on Twitter