UBS’s Latest Argument Against BTC: “Bitcoin Is Denied to Minority Groups With Reduced Online Access”
UBS just can’t seem to get Bitcoin, and time and again, it tries to come up with some arguments to support their opinion.
Earlier this year, UBS’s chief economist said crypto had a fundamental flaw, and it was Bitcoin’s fixed supply. Then a couple of months later, they pointed to Bitcoin’s lack of real-world use and volatility to categorize it as a speculative bubble.
Now, they have found “something weird about Bitcoin.”
Yet again, UBS chief economist can’t help but point out how “Bitcoin seems to specifically defy the spirit of the age, in a way other cryptos do not.”
Paul Donovan argues that while some suggest Bitcoin as a safe haven from runaway inflation, not only does controlling supply not guarantee value, but major economies’ inflation has been low and stable for two decades and “Hyperinflation concerns for developed economy fiat currency seem to belong in a different era.”
He then notes that the trillion-dollar asset is increasingly destructive to the environment, which isn’t supported by data, and companies like Twitter CEO’s Square and Cathie Wood’s Ark are arguing for “bitcoin as a key driver of renewable energy’s future.”
In fact, according to Donovan, while politicians and economists increasingly value inclusion, “Bitcoin is denied to those minority groups who have reduced online access,” yeah, they went there.
He further says, Bitcoin warrants its miners to be rich, and the holdings are concentrated amongst a tiny number of people. “Its governance is more plutocratic than democratic,” he added.
The only modern trend, according to Donovan, bitcoin embraces is the power of narrative which he says matters hugely to the largest cryptocurrency’s evolution, “Otherwise, Bitcoin seems opposed to the modern Zeitgeist,” he wrote.