The chief economist for financial services giant UBS came out against bitcoin and cryptocurrencies in a big way on Twitter last week.
In a series of tweets on Nov. 1 and 2, UBS global chief economist Paul Donovan compared bitcoin to the Netherland's 1637 tulip crisis, the Weimar Republic's hyperinflation and PetSmart. His remarks came after derivatives powerhouse CME Group revealed its intention to list a bitcoin futures contract later this year.
Donovan's most forceful objection to bitcoin came from the tulip analogy:
Though Donovan compared the bitcoin bubble to the tulip mania, he stated in a follow-up tweet that the economic impact would likely differ. And in an email to CNBC, he said that the idea of not delivering a product was "shocking" at the time. People picked up and traded tulip bulbs in taverns, which he likened to today's cryptocurrency exchanges.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.