UBS Gives Bitcoin a Reality Check
Money? Asset? Maybe a Lottery Ticket
UBS’s latest note feels like a stern grandfather’s pep talk: “Bitcoin, you’re still a bit of a wild ride and not ready to be the next big thing in finance.”
Key Takeaways
- Not Money, Not a Solid Asset: UBS points out that Bitcoin is “too unstable” to meet the standards of a proper currency or trustworthy investment.
- Price Volatility Troubles: Its wild price swings make it unsuitable for everyday transactions or long‑term holding.
- Technological Limitations: Even the tech that powers Bitcoin can’t keep up with the demands of a global payment system.
What About Replacing the US Dollar?
According to UBS, for Bitcoin to even gasp‑a‑bit replace the U.S. money supply, it would need to reach a ridiculous price of about $213,000 per coin. That’s roughly 35 times its current level, which sits near $7,500 today.
Remember: 2018 Was Rough
Bitcoin’s price fell about half in 2018, and it’s still battling the roller‑coaster that keeps its value on the edge.
Bottom line? Even though Bitcoin is a hot topic, UBS remains skeptical that it’s capable of becoming the next global currency. For now, it’s more like a flashy side hustle than the fast money of the future.
