UBS, one of the world's largest investment banks, has published a report stating that the upcoming repayments to creditors of Mt. Gox are unlikely to destabilize Bitcoin. The report suggests that early adopters of Bitcoin, who are likely to be among the creditors, will choose to be paid in Bitcoin and hold onto it, rather than selling it immediately.
The rehabilitation plan for Mt. Gox creditors offers several options for repayment, including a choice between an early lump sum or waiting for more asset recoveries. The report notes that the option of receiving fiat repayments would require the exchange to sell BTC to raise cash, potentially putting pressure on Bitcoin's price.
Although 850,000 BTC were lost in the Mt. Gox hack of 2014, the exchange has since recovered 142,000 BTC, along with 143,000 in Bitcoin Cash and 69 billion Japanese yen ($510 million), representing about 20% of the original loss. While the potential for repayments to influence the price of Bitcoin exists, UBS believes that much less Bitcoin will come to market than some have feared, due to the strong conviction of early adopters in the cryptocurrency.
Recent reports suggest that two of the largest creditors, with a combined share of claims of 20%, have opted for the crypto payout, further reducing the potential impact on Bitcoin's price. UBS concludes that while some new supply could still come to market, it is likely to be less concentrated, and this news could be an additional factor in Bitcoin's recent resilience.
Overall, UBS's report suggests that the repayments from the Mt. Gox bankruptcy are unlikely to have a significant impact on Bitcoin's price or stability, as early adopters are likely to hold onto their Bitcoin and remain committed to the crypto currency.
Disclaimer: The information provided in this article is for educational and informational purposes only and should not be considered financial or investment advice. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency or organization. It is recommended that readers conduct their own research and analysis before making any investment decisions.
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