In a report “Cryptocurrencies: Beneath the bubble ,” UBS CIO Americas, Wealth Management (UBS CIO-A WM), demystifies the world of cryptocurrencies and their technological underpinning—the blockchain—with insights into their applications and long-term opportunities for investors.

While cryptocurrencies have a number of advantages over mainstream currencies, CIO-A WM is doubtful that they will ever become a mainstream means of exchange, and thinks the sharp rise in cryptocurrency valuations in recent months is a speculative bubble. Nonetheless, the underlying blockchain technology is likely to have a significant impact in industries ranging from finance to manufacturing, healthcare and utilities. We estimate that blockchain could add as much as $300 billion to $400 billion of annual economic value globally by 2027.