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A recent publication about Bitcoin by Paul Donovan chief economist at the largest bank in Switzerland, UBS, has led to some uproar on social media.
In a weekly update published on the bank’s website entitled “Does Bitcoin defy the Zeitgeist?”, Donovan outlined a number of issues with the cryptocurrency.
In quite a provocative piece, the economist openly disagree with what many Bitcoiners consider the fundamentals of the cryptocurrency.
Donovan suggested that “There is something weird about Bitcoin. Bitcoin seems to specifically defy the spirit of the age, in a way other cryptos do not.”
“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,” he added.
He also played the environmentalist’ card and said:
“We cannot keep living on environmental credit and must become increasingly sustainable. Bitcoin is increasingly destructive to the environment – the more that is created and used, the worse the environmental damage.”
“There is a global focus on reducing inequality. Bitcoin has extraordinarily unequal ownership. Holdings are concentrated amongst a tiny number of people, and its governance is more plutocratic than democratic.”
“Politicians and economists increasingly value inclusion, yet bitcoin is denied to those minority groups who have reduced online access.”
By ignoring the fundamentals of Bitcoin and its decade long development, he concluded that “The modern trend that Bitcoin embraces is the power of narrative. Story telling matters hugely to Bitcoin’s evolution. Otherwise, Bitcoin seems opposed to the modern zeitgeist.”
All of this did not sit well with the community and Bitcoin proponent and Orange Pill podcast host, Max Keiser tweeted:
Regarding Donovan’s claim of bitcoin’s reduced access for minority groups, it was not difficult to find the flaws and hypocrisy for his claim. And it got revealed.
Donovan’s report seems biased and an example of someone who has not properly done his homework. Recent numbers indicate that crypto adoption is particularly high in Latin America and South African countries. Its popularity driven in particular because of its value compared to the local fiat currency and the easy of transacting.