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Paul Donovan, the chief economist of financial giant UBS is in today’s crypto news for reiterating his position about cryptocurrencies that he believes they have no future.

While talking to CNBC, Donovan explained that all cryptocurrencies are flawed and can’t really go mainstream. According to him, bitcoin and other cryptocurrencies increase to ridiculously high levels towards the end of 2017 and that should have been obvious that it would end badly.

The biggest flaw with cryptocurrencies is that they cannot become a store of value by saying:

‘’Every economist knows that a store of value is about balancing supply and demand. But with cryptocurrencies you cannot control that supply in response to a drop in demand.’’

He went on to that the only thing cryptocurrencies could achieve a widespread adoption in failed states. This conclusion comes as a response to the Federal Reserve Bank of St. Louis issuing a white paper suggesting that cryptocurrencies can prove to be useful in countries with a high devaluation of their fiat currencies.

‘’ If you don’t have a government, then society gets a little bit more anarchic and in that situation, something like cryptocurrency can be useful does still come true,’’ continued Donovan.

In the interview, Donovan claimed that all of the crypto creators lack general economic knowledge. He says that creators of cryptocurrencies are brilliant at math but still don’t know about economics. He says that real value comes from matching supply and demand and that crypto supply can go up but it cannot go down. However, crypto demand can go down and it was created by blind faith and not ‘’ real economics’’.