On Thursday (January 14), according to Bloomberg, a team of strategists at UBS Global Wealth Management wrote in a report that any cryptocurrency’s price could potentially go to zero. Earlier today, the Binance CEO explained why the Bitcoin price will not.
According to Bloomberg’s report, UBS’s report was written by a team that included Michael Bolliger, who is the Head of the Emerging Markets Asset Allocation team at UBS Chief Investment Office. Bolliger acts as a regional Chief Investment Officer for the CEEMEA region.
Here is the relevant section of the UBS report:
“There is little in our view to stop a cryptocurrency’s price from going to zero when a better designed version is launched or if regulatory changes stifle sentiment… Netscape and Myspace are examples of network applications that enjoyed widespread popularity but eventually disappeared.”
Well, in the case of Bitcoin, Binance Co-Founder and CEO Changpeng Zhao (aka “CZ”), said (in a tongue-in-cheek manner) that in the unlikely event that the Bitcoin price drops to zero, he personally guarantees to buy every bitcoin out there, and so it is not possible for the price of Bitcoin to crash to zero.
One interesting reply to Bloomberg’s came from Mira Christanto, Asia Advisor at Messari, who tweeted: “Did they warn clients Oil can go to below zero?“
Another came from Dan Held, Head of Growth at crypto exchange Kraken, who tweeted: “So can any other investment…“
Preston Pysh, Co-Founder of The Investor’s Podcast Network, replied:
“I heard it might go negative like the price of oil. It could become so undesirable that no one even wants it in their hardware wallets… people would pay you to put it in your hardware wallet. It COULD get that bad. It’s so scary.“
And finally, Danny Scott, CEO of crypto exchange CoinCorner, added:
“Comparing #Bitcoin to “Netscape and Myspace” is wrong guys. You should be comparing it to TCP/IP. An open decentralised technology that anyone in the world can build on.“
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
