Largest Swiss bank reports BTC must rise 970% to replace US Dollar

posted 3 months ago
According to the largest Swiss bank, UBS, Bitcoin can replace fiat currency if it hits $213,000 (970% of its all-time high of nearly $20K.) The high volatility and low transaction processing capacity of its network was reported to be holding it back from becoming a mainstream asset class or money. “Owing to its lack of price stability, Bitcoin falls short of criteria that need to be satisfied to be considered money.”

BTC's network processes approximately 7 transactions per second which is a small percentage of mainstream payment processor companies like Visa and Mastercard. This constraint inherent in Bitcoin’s network is what limits its usefulness according to Joni Teves, the strategist at UBS who said “Bitcoin cannot handle the volume of transactions processed by mechanisms being used in the real world.” The UBS report published by its strategists also stated cryptos have the potential to become an alternative asset class, and in order to be a legitimate asset class, regulatory support will need to work in its favor. However, it also noted that the price of crypto is likely to remain highly volatile and be more appealing to speculative investors.
Tags: opinion, bitcoin, news