Bitcoin’s Value and Supply May Keep It from Becoming A Currency: UBS Wealth Economist
Bitcoin has been criticized for as long as it has been around, which is why there are so many popular pessimists. A recent tweet from Julie VerHage, a reporter for Bloomberg, seemed to include a screenshot from UBS economist Paul Donovan.
The screenshot included an alleged blog post titled “I come to bury Bitcoin, not to praise it.”
The screenshot, which was reported by The Block, discusses the way that Bitcoin cannot possibly become a currency, which is credited to the lack of experience that the creators had in economics. The post noes that the demand of Bitcoin was the result of “blind faith, not real economics.”
Bitcoin has a predetermined supply, which means that the demand will never increase that supply. The article adds,
“The failure to balance supply and demand destroys value. Value is being destroyed right now.”
In the article, as it concludes, the writer appears to take on a more positive spin, but not in cryptocurrency’s favor. They note that the resources that created the crypto “bubble” has a chance to “be used to do something useful,” rather than contributing to cryptocurrency. Continuing, it says,
“Getting skilled people to do something useful boosts the economy.”
Though there is a link by The Block that will take readers to the Twitter post with the screenshot, there is no information about its source. Even upon examining the UBS website, where Paul Donovan’s articles and pieces are posted, there is no item listed under this title.