As if UBS has no enough troubles, Chief Economist at UBS Paul Donovan has decided to add fuel to the fire, by saying that crypto money is “fatally flawed,” and that the current situation with the market is just like another “bubble.”
In a recent interview with CNBC, Donovan highlighted that the reason for cryptocurrency market decline is because of fundamental misunderstanding of monetary policy. Thus, UBS made its position concerning the cryptocurrency market, though it admitted there was some value in blockchain technology.
UBS says it's time to bury bitcoin. The man behind the bold call UBS' Paul Donovan makes his case. #bitcoin $BTC pic.twitter.com/8eX8E4fK1A
— CNBC's Fast Money (@CNBCFastMoney) November 29, 2018
Meanwhile, Donovan’s position shouldn’t considered as a truth of last resort. The German government for example doesn’t consider cryptocurrency as a potential threat to financial stability and doesn't see any necessary reason to levy tax on it.
However, given the situation of how much is bitcoin worth right now, Donavan's statement may be considered as an UBS’ attempt to hide its real intentions — to lower bitcoin price, causing the start of massive sell off and to buy it at a low price.
Anyway, right now bitcoin price is doing quite good despite the recent big market all. At press time, bitcoin is trading at $4,049 (-5.85%).
Earlier, technical strategist at Fundstrat Global Advisors Rob Sluymer shared his opinion according to which, bitcoin stopped at the position where it may finally begin his long-term growth.
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