Image source: Executives magazine
In a race where many economists view bitcoin as a bubble, UBS executive, Paul Donovan join the rally blasting Bitcoin again. In a recent interview with CNBC, Donovan talked about bitcoin and the recent wave across crypto market which he calls “not healthy”. Looking at his latest blog post, entitled “I come to bury Bitcoin, not to praise it”, began claiming cryptocurrency as a bubble, “may be in its death throes”, Anthony Pompliano took twitter stating;
I think Paul Donovan is paid by a bank to pump an anti-Bitcoin rhetoric. Good luck to them!
— Pomp 🌪 (@APompliano) November 30, 2018
While Bitcoin is Bubble, Blockchain is a different – Donovan
UBS Chief Economist has recently written a blog post blasting on Bitcoin and also join CNBC’s fast money interview to talk about the same. He said Bitcoin “an evil bubble” and will never be a currency. The article claimed that the crypto designers are good at Bitcoin but appear to be poor at economics. He pointed out that the real value of a currency comes “aligning demand and supply”.
The underlying technology of blockchain, the distributed ledger system – that’s different. He went on pointing, “There’s an economic proposition there; again, there’s a certain amount of hype around it, but to go from that to ‘Bitcoin is going to replace the dollar’ is quite a leap.”
Donovan as Bitcoin cynic wrote that;
“I think anyone with a high school education in economics has been a Bitcoin skeptic right from the start,” adding, “These things were never going to be currencies, they’re not going to be currencies at any point in the future; they’re fatally flawed.”
Crypto enthusiasts react Donovan’s Claim
Following his claim, Twitter enthusiast went on denying and reacted assertively over the claim
— Faysal Ramses (@RamsesFaysal) November 30, 2018
It's time to bury $UBS. The firm behind the bold call is down 41% in a golden bull market.
How embarrassing. I can't even fathom how they performed so poorly.
— The Crypto Dog📈 (@TheCryptoDog) November 30, 2018
I get such a kick out of the arrogance that these people speak with.
Show me how perfect your economic system is and how well a bank like UBS operates. https://t.co/lJ0kdtM6di
— Trajan (@trajanmex) November 30, 2018
In addition, closely looking at the coinmarketcap, Bitcoin was trading at $4005 with market cap $69,697,967,302. XRP holds second position and Stellar overtaking Bitcoin Cash for the first time.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com