In a new 34-page report, Swiss banking giant UBS says the leading cryptocurrency is a contender for replacing the US dollar if its price or its network capacity reaches a certain level.
The report states that in order for “Bitcoin to replace U.S. money supply — paper bills, coins, travelers’ checks and the like — it’s price could need to hit nearly $213,000, or its network’s processing capabilities would need to dramatically improve.”
The report notes that Bitcoin’s volatility is likely to continue for the foreseeable future, and that it’s not yet a viable asset.
The amount of Bitcoin being used by real-world merchant processing services has dropped. In September, the amount of Bitcoin being used in commerce hit a high of $411 million. That number dropped to $60 million in May, according to research that startup Chainalysis Inc.