UBS economist says bitcoin will never be a currency

Paul Donovan, Global Chief Economist of Swiss financial services firm UBS Wealth Management, said that bitcoin will never be a currency and that while its designers were brilliant at maths they knew nothing about economics. Mr. Donovan thinks that real value is derived from matching supply and demand while bitcoin's supply can only go up and bitcoin's demand was created by "blind faith, not real economics." According to Donovan, since the bubble has popped, the ownership of bitcoin was transferred from a large number of "bubble buyers" to a small number of "bubble sellers," which concentrated wealth and changed how money is spent. He says that the time, effort, and electricity that built the bubble "can now be used to do something useful" and that "giving money to cryptocurrency creators was not useful." (Source: UBS)