UBS Report says that to Replace Fiat Bitcoin Needs to Reach $213K
Bitcoin, the largest cryptocurrency by market cap and therefore the most famous cryptocurrency by interest, became popular in December 2017 when its price reached a high of $20,000. Since its popularity, the question of whether bitcoin will eventually replace fiat or not has been in the works. A recent report by UBS states that to be able to replace fiat currency, Bitcoin would have to reach a price of $213,000.
Unless the cryptocurrency reaches this price level or there are dramatic improvements in its network processing capabilities, it will not be feasible to replace fiat currency. The report stated,
Our findings suggest that Bitcoin, in its current form, is too unstable and limited to become a viable means of payment for global transactions or a mainstream asset class.
In an official blog post, Pantera Capital estimated the price of bitcoin to be around $21,000 by the end of this year and $67,500 by the end of next year.
Furthermore, Tom Lee, the co-founder of Fundstrat Global Advisors said that he expects the price to be above $20,000 by the end of this year as well.
Billionaire crypto investor Tim Draper said in an interview with the Street that he expects the Bitcoin price to reach around $250,000 in 2022. This 250,000 mark is definitely higher than the $213,000 price stated by the report.
John Mcafee said in a tweet,
When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bitcoin at $1 million by the end of 2020.
While bitcoin supporters are optimistic about this, studies show that its use in commerce has declined over the years. According to the report, while cryptocurrencies could become an alternative asset class, the high volatility in prices makes it more interesting to speculative investors.
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