UBS: Crypto Has Fundamental Flaw, Bitcoin’s Fixed Supply Could Cause Its Valu...
A chief economist at UBS, the largest bank in Switzerland, says cryptocurrency has a fundamental flaw. Bitcoin’s fixed supply could cause the collapse of its value and spending power, making it unattractive to use as a currency, he claims. A UBS Chief Economist Says Bitcoin’s Fixed Supply Is a ‘Fundamental Flaw’ Paul Donovan, Chief Economist of UBS Global Wealth Management, explained last week why people won’t want to use bitcoin as a currency. UBS is the largest bank in Switzerland. “The debate about bitcoin and other crypto tends to be very passionate.....
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Namecoin, the basis of a decentralised domain name system (DNS), has been found to have a fundamental flaw which allows any .bit domain to be taken over ... by anyone. There are over 103,000 .bit domains, and while evidence suggests none of them have been maliciously taken over, the protocol that governs those domains cannot be trusted until fixed. While Namecoin was a coin that could be traded like any other cryptocurrency, it had a much nobler function in life than being a mere commodity to trade and spend. The raison d'etre of Namecoin was to provide a decentralised and....
American publisher Steve Forbes has attacked bitcoin’s fixed supply saying this feature actually curbs the ability of the crypto to “meet the needs of a growing economy.” He also argues that bitcoin cannot replace the dollar because it is presently too volatile to function as money. Forbes insists that money only works best if it has a stable value. New Respectable Investment Class According to Forbes, cryptocurrencies can only challenge existing money if their value is tied to that of gold or the Swiss franc currency. In arguing his case against the idea that bitcoin....
In the crypto market, though most cryptocurrencies share similar underlying technologies, they are designed based on different economic models known as tokenomics. To be more specific, some cryptos feature a supply that increases over time, while some others have a fixed supply. Yet, a minority of cryptos come with a diminishing total supply that looks deflationary. Such tokens are referred to as deflationary cryptos. We all know that some cryptos with a fixed supply, such as Bitcoin, are generally deflationary by default. Most members of the Bitcoin community reject inflation because it....
Economist Frances Coppola and senior commodity strategist at Bloomberg Mike MgGlone clash on everything Bitcoin. In a recent video debate, Bitcoin skeptic Frances Coppola debated Bloomberg senior commodity strategist Mike McGlone on the economics of Bitcoin, market manipulation and predictions for 2021. Coppola is skeptical that Bitcoin will ever succeed as a store of value because of its high volatility which, according to her, is a direct consequence of the asset’s fixed supply rate. “With a fixed rate of increase of supply (...) the only thing that can adjust to changes in demand is....
Here is a reality check for all the Bitcoin naysayers, the most widely used conventional electronic payment system – credit/debit cards are not really as secure as we had earlier thought. A serious protocol level flaw exposed by a couple of German security experts bares it all. It is not just the security flaw one has to be concerned about, but also the banks’ apathy towards fixing it! A recent report carried by well-known Russian media channel, Russia Today describes the serious security flaw in POS terminals. According to Karsten Nohl, one of the security experts from the Berlin based....