According to UBS Global wealth management’s chief economist, Paul Donovan, crypto-currencies are almost about to outlive their usefulness, and it is indeed time to do away with the coins. UBS’ Paul Donovan is known for not being crypto’s biggest fan and famously wrote this week, “I come to bury Bitcoin, not to praise it.”
Donovan went on to say on CNBC’s fast money, that “These things were never going to be currencies. They’re not going to be currencies at any point in the future”
From mid last year, all the way to December last year, Bitcoin had hit unprecedented highs, and had captured every investor’s imagination; things have been different this year though, with Bitcoin crashing to lows not seen in a long time.
Even when Bitcoin was riding high, Donovan was pretty skeptical, warning people that the bubble would soon burst. At the time, he famously told CNBC, “Right from the start of the hike in late last year, it was fairly obvious that this was going to end badly, unfortunately, for some of the people who weren’t protected by any kind of regulation and got sucked into the process,”
Donovan is now of the opinion that crypto-currencies could be on their deathbed, this may be a hard opinion to counter, in the face of the crypto markets losing about 700 billion since January.
According to Donovan crypto is unreliable since “they’re never going to be a store of value”. He also laughed off the possibility of cryptos replacing the dollar, arguing that the store of value is usually controlled by supply and demand, and with crypto, controlling supply and demand is impossible-in his view