Summary: 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 “bitcoin is denied to those minority groups who have reduced online access.” Paul Donovan, Chief Economist of UBS Global Wealth Management, published ...

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 “bitcoin is denied to those minority groups who have reduced online access.”

Paul Donovan, Chief Economist of UBS Global Wealth Management, published a weekly update entitled “Does Bitcoin defy the Zeitgeist?” on the UBS website Friday outlining a number of issues he sees with the cryptocurrency.

“There is something weird about Bitcoin. Bitcoin seems to specifically defy the spirit of the age, in a way other cryptos do not,” he began, adding: “Some suggest bitcoin is a safe haven from runaway inflation. But controlling supply does not guarantee value … Bitcoin has a history of extreme price fluctuation.”

“We cannot keep living on environmental credit and must become increasingly sustainable,” he continued, claiming that “Bitcoin is increasingly destructive to the environment – the more that is created and used, the worse the environmental damage.”

By Amy Liu