Swiss banking giant UBS’s bitcoin analysts suggest that cryptocurrencies will replace fiat currency in the coming future, only if the price of bitcoin hits $213,000, or its network’s processing capabilities would improve significantly.
The firm revealed in a new report announced recently. The report reads, “Bitcoin to replace U.S. money supply — paper bills, coins, travelers’ checks and the like — it’s price could need to hit nearly $213,000, or its network’s processing capabilities would need to dramatically improve,” according to reports from Bloomberg.
UBS further added, firstly, BTC should be acknowledged as money or a viable asset class to replace the money supply. The money supply includes paper bills, coins, travelers’ checks and the like.
UBS explained in a 34-page report As if now, BTC can handle only a less fraction of payment volume like the other that companies like Visa Inc. handle. And that capacity constraint, inherent in the design of Bitcoin’s network, could continue to limit the digital currency’s usefulness.
The report reads, “Our findings suggest that Bitcoin, in its current form, is too unstable and limited to become a viable means of payment for global transactions or a mainstream asset class.”
Three Popular verdicts for Bitcoin
Wall Street trader, Bart Smith’s first cited the first scenario, bitcoin replacing fiat currencies all over the world. He considers BTC would become the de facto payment means for all types of transactions like mortgage payments, import duties and more. Within a span of a decade, BTC will become the single global currency, big names in the tech industry like Jack Dorsey as well as Steve Wozniak strongly believes.
The second scenario is BTC becoming the new gold. In this case, the cryptocurrency will not replace fiat but will become a valuable asset that investors will use to guard against stock market crashes.
The final verdict is Bitcoin becoming worthless. The most popular cryptocurrency will vanish like other failed digital revolutions.
Experts including Smith believes and shows data to prove BTC’s eligibility as currency. Smith also opinionated that the first generation cryptocurrency is unlikely to die out.
If BTC prices hit $213,000 or if the network processing capabilities are upgraded, then BTC will replace fiat currency in the near future as predicted by the banking giant.
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