A chief economist at UBS, the largest bank in Switzerland, sees a number of problems with bitcoin. In attempting to answer the question of whether the cryptocurrency defies the zeitgeist, he claims that â€œbitcoin is denied to those minority groups who have reduced online access.â€
UBS Chief Economist Sees Multiple Problems With Bitcoin
Paul Donovan, Chief Economist of UBS Global Wealth Management, published a weekly update entitled â€œDoes Bitcoin defy the Zeitgeist?â€ on the UBS website Friday outlining a number of issues he sees with the cryptocurrency. UBS is the largest bank in Switzerland.
â€œThere is something weird about Bitcoin. Bitcoin seems to specifically defy the spirit of the age, in a way other cryptos do not,â€ he began, adding:
â€œWe cannot keep living on environmental credit and must become increasingly sustainable,â€ he continued, claiming that â€œBitcoin is increasingly destructive to the environment â€“ the more that is created and used, the worse the environmental damage.â€
Furthermore, he asserted: â€œThere is a global focus on reducing inequality. Bitcoin has extraordinarily unequal ownership. Holdings are concentrated amongst a tiny number of people, and its governance is more plutocratic than democratic.â€ The economist additionally claimed:
As for the zeitgeist, he concluded that â€œThe modern trend that Bitcoin embraces is the power of narrative. Story telling matters hugely to Bitcoinâ€™s evolution. Otherwise, Bitcoin seems opposed to the modern zeitgeist.â€
Many bitcoiners took to social media to counter Donovanâ€™s argument. Bitcoin proponent Max Keiser tweeted: â€œUBS doesnâ€™t understand the meaning of â€˜Zeitgeist.â€™ Faced with an existential threat from Bitcoin â€“ as the real popular zeitgeist moves against them â€” Paul Donovan blabs boomer claptrap to the bankâ€™s geriatric constituency hoping to stave off extinction. It wonâ€™t work.â€ Another Twitter user concurred: â€œIâ€™m not sure you understand what the word â€˜zeitgeistâ€™ means â€“ else youâ€™d be saying that Bitcoin is an integral part of it.â€
Regarding Donovanâ€™s claim of bitcoinâ€™s reduced access for minority groups, many people pointed out the hypocrisy. A different Twitter user commented:
Another emphasized several flaws in Donovanâ€™s claims, including that â€œUBS requires a balance of 10,000 Swiss Franks â€¦ to have an open account. I think people in crypto and bitcoin would agree this is a barrier for the people you claim to support.â€
In January, Donovan wrote that cryptocurrency has a fundamental flaw and that bitcoinâ€™s fixed supply could cause the collapse of its value and spending power.
What do you think about Paul Donovanâ€™s view on bitcoin? Let us know in the comments section below.
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