The world largest economy the U.S. may overhaul its money supply containing paper currency, cheques, and coins if crypto-based bull market accelerates its speed. According to the UBS – a global banking giant advises the crypto bull rally that they have to trade patiently while keeping in mind the real facts about the U.S. money supply. The crypto major Bitcoin must trade at $213000 precisely if it really adds value to the US economy.
Because in the present scenario where Bitcoin is unstable and limited and cannot be feasible through which that can be used as a means of payment for any global transactions. Nor does it gets accommodated in any asset class as said by UBS. When we compare Bitcoin with other payment methods like VISA, Mastercard, the Bitcoin can be recognized as payment options only if it adds its network capabilities that it currently lacks the processing power in order to handle multiple transactions at once.
The crypto major will struggle until it fixes this problem in place. Only then it will widely be accepted by everyone and thereby fuelling its growth. With this, the major concerns with the Bitcoin are its extreme volatility that creates a complex situation for its growth and wider recognition as per the valid source by UBS. Additionally, the unusual demand and fixed supply of the crypto major make the system vulnerable to higher price volatility thereby making it difficult for Bitcoin to be considered a new asset class. Needless to say that the year 2018 has been frustrated for Bitcoin as it has lost more than half of its value approximately $20,000 since December last year.
Amongst all these complexities, the Bitcoin initiated a rally by rising above $8000. This is a good signal amongst all those cryptocurrencies that are traded on worldwide exchanges.
Let us not forget that there are more than 1750 cryptocurrencies (as per CoinMarketCap) are traded currently. Now that the blockchain technology and the crypto concept have started gaining its footprints amongst the worldwide investors and entrepreneurs community, there is a variety of mechanism requires to be in place for the perspective to gain a competitive advantage against the traditional payment methods in place!!