UBS bank analysts doubted the status of bitcoin as a security asset.

Bankers are again questioning the prospects of the first crypt currency. This time the status of bitcoin as a protective asset tried to challenge in the Swiss division of UBS, writes Decrypt.

A protective asset is defined as a financial instrument that has the potential to preserve or enhance value during an economic downturn. Such assets are independent of the wider economy and demonstrate resilience in the face of market collapses, allowing investors to earn or at least not lose their assets. Although the demand for protective assets is growing, UBS does not see one of them as a bitcoin.

"With their high volatility and the scale of previous drops, cryptov currencies may be attractive to speculative investors, but they are not an acceptable alternative to protective assets and do not necessarily contribute to portfolio diversification," - write banking analysts.

They give four reasons why they do not consider bitcoin a protective asset. First, the crypt currency does not pass standard risk tests because its exchange rate fluctuation is too high for most investors. "Trading oriented investors may find these fluctuations attractive, but our analysis shows that choosing the wrong time can lead to the destruction of capital," UBS writes.

Also important is the survivor error factor. Investors often pay attention to successful cryptov currencies and forget about failures. As a result, their ideas can be distorted. "Distinguishing between winners and losers requires a good understanding of the drivers of supply and demand for any crypt-currency," the report says.

The authors cite the lack of dividends or coupon payments as the third reason. This increases the importance of choosing the right time for investment. "Risky assets usually experience large declines, and without a constant financial flow it can rather lead to a complete loss of fortune," they add.

Finally, analysts are questioning the diversification benefits of bitcoin. According to their observations, recently the correlation of bitcoin with other asset classes has increased, so that the yield from its presence in the traditional portfolio has decreased.

A different view is expressed by MicroStrategy CEO, who recently invested $425 million in bitcoin.