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December 18, 2017 7:14 PM
Another banker has come out on the bearish side of bitcoin.
On December 18, 2017, United Bank of Switzerland (UBS) chairman Axel Weber reportedly revealed his doubts about bitcoin.
In a recent interview, the banker said that bitcoin suffers from “design flaws” and warned investors to beware of an inevitable bursting of what he surmises to be a bubble in the marketplace. He declared, “In my opinion, bitcoins are not money.” He also remarked that without a centralized governing issuer, a price determined solely by demand makes bitcoin subject to “huge price fluctuations in both directions.”
Weber went on to say that bitcoin fails to meet three key standards that money is designed to deliver: a store of value, a measure of cost, and ease of liquidity. According to Weber, volatility and a lack of mass acceptance, as well as prices being tethered to fiat currencies, stand in the way of bitcoin serving these functions.
Weber said, “regulators are needed” to provide a layer of consumer protection to investors who choose to buy bitcoin against the advice of UBS.
Jeremy Nation is a writer living in Los Angeles with interests in technology, human rights, and cuisine. He is a full time staff writer for ETHNews and holds value in Ether.
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