UBS's global wealth management advisory division warns: cryptocurrency buyers could lose all the money as regulatory changes can crash prices down to zero, Bloomberg reports.
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While the crypto prices may rise in the short-term, the Swiss firm says in the long run the industry faces existential risks over regulatory uncertainty:
"There is little in our view to stop a cryptocurrency’s price from going to zero when a better designed version is launched or if regulatory changes stifle sentiment," the analysts with Michael Bolliger, Chief Investment Officer of Emerging Markets at UBS Global Wealth Management wrote in a report.
The analysts cite Netscape and Myspace as examples of such sort of applications that "enjoyed widespread popularity but eventually disappeared." In the meantime, bitcoin (EXANTE: Bitcoin) is struggling with high price swings as BTC drops over 12% in a day. As of press time, bitcoin is trading at $36 256.
Bitcoin's local dip comes amid news that Coinlab, North American bitcoin transactions operator for the notorious cryptocurrency exchange Mt.Gox, has reached an agreement with Mt.Gox creditors over the bitcoin case. According to the company, the agreement with Nobuaki Kobayashi, the trustee to the Mt.Gox bankruptcy, will allow creditors to claim as much as 90% of 137,891 BTCs related to the Mt.Gox's hack.
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