The chief economist of UBS, Switzerland’s largest bank, believes that Bitcoin has many problems. In an attempt to answer the question of whether this cryptocurrency defied the spirit of the times, he claimed that “the minority groups that reduce online access refuse to use Bitcoin.”
UBS chief economist believes that Bitcoin has multiple problems
Paul Donovan, chief economist of UBS Global Wealth Management, released a weekly update entitled “Does Bitcoin Go Against the Spirit of the Times?” On Friday on the UBS website, he outlined Many issues related to cryptocurrency. UBS is the largest bank in Switzerland.
“Bitcoin is a bit weird. He began to say:
Some people believe that Bitcoin is a safe haven for out-of-control inflation. However, controlling supply does not guarantee value…Bitcoin has a history of great price fluctuations.
He continued: “We cannot continue to rely on environmental credit, we must become more and more sustainable.” He said: “Bitcoin is becoming more and more destructive to the environment-the more Bitcoin is created and used, it is more harmful to the environment. The more severe the damage.”
In addition, he asserted: “The global focus is on reducing inequality. Bitcoin has extremely unequal ownership. Holding is concentrated among a very small number of people, and its governance is richer than democracy.” The economist also claimed:
Politicians and economists are paying more and more attention to inclusiveness, but those minorities who reduce online access have rejected Bitcoin.
Regarding the zeitgeist, he concluded: “The modern trend accepted by Bitcoin is the power of narrative. Storytelling is essential to the development of Bitcoin. Otherwise, Bitcoin seems to oppose the modern zeitgeist.”
Many Bitcoin contributors use social media to refute Donovan’s views. Bitcoin supporter Max Keizer wrote on Twitter: “UBS does not understand the meaning of’zeitgeist’. Faced with the existential threat from Bitcoin-when the true popular zeitgeist At the time of the confrontation-Paul Donovan applauded the bank’s elderly patients to avoid extinction. This won’t work.” Another Twitter user agreed: “I’m not sure if you understand the’zeitgeist’ The meaning of the word-otherwise you would say that Bitcoin is an indispensable part of it.”
Regarding Donovan’s claim that Bitcoin reduces access by minorities, many people point to hypocrisy.Different Twitter users Commented:
Yes, it is certain that these poor minority groups can use UBS bank accounts as opposed to free bitcoin wallets on cheap Android phones.
Another highlighted several flaws in Donovan’s proposition, include “UBS requires a balance of 10,000 Swiss francs…to have an open account. I think people who use cryptocurrency and Bitcoin will agree, this is an obstacle for those you claim to support.”
In January, Donovan wrote that cryptocurrencies have fundamental flaws, and the fixed supply of Bitcoin may cause its value and spending power to collapse.
What do you think of Paul Donovan’s views on Bitcoin? Let us know in the comments section below.
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