Share this article
UBS: Bitcoin Is Too 'Unstable and Limited' to Function as Money
UBS doesn't believe bitcoin constitutes money or a viable asset class yet, but it could in the future.
By Muyao Shen
Updated Sep 13, 2021, 8:14 a.m. Published Aug 2, 2018, 9:45 p.m.
Investment bank UBS thinks bitcoin is neither money nor a viable asset class - not yet at least.
The Switzerland-based company's assessment was featured in a research report on the world's largest crypto by market capitalization, which was circulated to clients and released on Thursday.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Published by UBS strategists, the report concludes that bitcoin "falls short of criteria that need to be satisfied to be considered money." It explains,
"Fixed supply and unusual demand dynamics make the system susceptible to high price volatility, in turn making it difficult for bitcoin to step into the role of money or to be a viable new asset class."
However, the authors don't rule out the possibility that bitcoin could one day become these things.
They argue that if bitcoin can achieve scalability and regulatory support, it could one day become "a viable payment mechanism and/or a legitimate asset class in which even the most conservative and traditional investors can participate."
Likewise, they note their plans to "keep on top of these developments," as "many" see promise in cryptocurrency's underlying blockchain technology.
According to the report, the research was the banking giant's answer to its investors, who are becoming increasingly interested in the cryptocurrency space.
"We have received many questions on the subject, which we hope to address in this educational piece," the authors wrote in the publication.
The authors' findings were based on comparisons of bitcoin with "macro variables and its performance against various asset classes." They frequently draw parallels between bitcoin and online payments provider PayPal, and conclude that bitcoin "diffusion" could follow trends in online payments.
This is not the first time UBS has expressed a cautious view on cryptocurrency. In 2017, it declared cryptocurrencies a "speculative bubble" in a report due to sharp rises in price at the time. Nonetheless, the bank has consistently been bullish on blockchain, and advised investors in the same report that "blockchain is likely to have a significant impact" on a variety of industries.
UBS image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Bitcoin Faces Japan Rate Hike: Debunking The Yen Carry Trade Unwind Alarms, Real Risk Elsewhere
Speculators maintain net bullish positions in the yen, limiting scope for sudden JPY strength and mass carry unwind.
What to know:
- Impending BOJ rate hike largely priced in; Japanese bond yields near multi-decade highs.
- Speculators maintain net bullish positions in the yen, limiting scope for sudden yen strength.
- BOJ tightening may contribute to sustained upward pressure on global yields, impacting risk sentiment.
Top Stories
