How 'Burying' Bitcoin Could Be Beneficial

The Chief Global Economist at UBS Wealth Management, Paul Donovan recently said in an interview in which he explained why he had written a blog post with the alluring title of "I come to bury bitcoin, not to praise it."

In a post for the UBC Global Wealth Blog that was published on 26th November 2018, Donovan had made quite a few negative remarks regarding the leading cryptocurrency, Bitcoin.

"The cryptocurrency bubble may be in its death throes."

"Economists said from the start that Bitcoin and the like would never be currencies. They never will be currencies. Their designers are brilliant at maths. Their designers appear to know nothing about economics."

 

The evil of the Bitcoin bubble lives on. The bubble took money from a large number of bubble buyers. That money was given to a small number of bubble sellers."

After he set off on his Bitcoin rant, the economist attempted to defend his views in an interview on the Fast Money segment on CNBC which was hosted by Melissa Lee and the Fast Money traders.

As reported by CryptoGlobe, when Donovan sat down with Lee, she asked him several questions but started off by asking if he had been waiting a while in order to release this note at a point in time when it looked like the bubble had burst so that he could “bury Bitcoin”.

In response to this, Donovan said:

"To be perfectly honest, I think anyone with a high school education in economics would be a Bitcoin skeptic right from the start. These things were never going to be currencies. They are not going to be currencies at any point in the future. They are fatally flawed, and as a result, from the start of the hype in late last year, it was fairly obvious that this was going to end badly, unfortunately, for some of the people who weren't protected by any kind of regulation and got sucked into the process."

Another question Donovan was asked was if he thought there were no use cases for Bitcoin in which he replied saying:

"Well, I think, if you are looking at a situation where government ceases to exist to all intents and purposes, that does help remove one of the main obstacles, which is you can't pay taxes in Bitcoin. Some people claim that you can at various locations, but you can't. You pay it in the currency of the government, and they may offer you a deal where you can convert your bitcoin at a very disadvantageous exchange rate.”