Fiats are trendy! Bitcoin (BTC) would be from another era, with obvious flaws that would be obvious to any good economist. When an advocate of traditional banking flaunts his knowledge of BTC, we can only laugh or cry.
When a Swiss bank talks about inclusiveness …
On April 30, 2021, theChief Economist of UBS Wealth Management, Paul Donovan, publishes a post titled “Does Bitcoin defy the Zeitgeist?” – Bitcoin does it defy the spirit of the times? – on the website ofUBS.
Paul Donovan begins by stating that ”There is something weird about Bitcoin. Bitcoin appears to specifically defy the spirit of the times, in a way that other cryptocurrencies do not.“.
Donovan then criticizes the view that Bitcoin is an inflation hedging asset. The fixed offer of BTC does not, according to him, guarantee its value, while evoking the high volatility of the BTC in the past.
January 2021, Donovan attacks the fixed offer of Bitcoin, which could cause, according to him, the collapse of its value and its purchasing power.
What would an attack be on Bitcoin without mentioning its energy-intensive mining? Donovan speaks of a Bitcoin “increasingly destructive to the environment – the more it is created and used, the greater the environmental damage“.
It even goes so far as to deal with the governance of Bitcoin of “plutocratic than democratic“. Only a very small number of people hold BTC.
The latter would be inaccessible to minority groups with limited internet access, while politicians and economists have embraced inclusion.
The narration would be “of paramount importance for the evolution of Bitcoin“. The latter would not however kiss “the spirit of modern times“.
So banking is better?
All reviews of Donovan are they founded? He nevertheless managed to provoke an outcry from bitcoiners on social networks.
For Max Keiser, “UBS does not understand the meaning of ‘Zeitgeist’. Faced with the existential threat of Bitcoin – as the real grassroots zeitgeist turns against them – Paul Donovan is blasting boomer nonsense at the bank’s geriatric electorate in the hope of avoiding extinction. It won’t work“.
Another twitto agrees: “I’m not sure you understand what the word ‘zeitgeist’ means – otherwise you would say Bitcoin is an integral part of it.“.
One bitcoiner was quick to point out the hypocrisy of the criticism that the BTC is not accessible to minority groups, knowing that they could not open a UBS bank account. While he could create a free wallet BTC with an entry-level Android smartphone.
Some are waiting for the end of the world, others for the collapse of Bitcoin. They will all have to wait a long time yet.
Fashion is good, but blockchain is the future, we agree, right ?! It’s a great opportunity and an evolving sector! On a daily basis, my job is to try to popularize cryptos / blockchains as well as possible, which appear to be far too technical.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.