Bitcoin outperforms gold as an alternative currency and is significantly more likely to continue to grow, Business Insider reports citing a new report from JPMorgan, a US investment bank.
Analysts are drawing attention to the low capitalization of Bitcoin Champion, which, in their view, can be explained by the fact that the cryptovoltaic currency is mainly chosen by millenniums. The older generation prefers to keep assets in material form, in particular gold.
JPMorgan estimates the physical gold market to be worth $2.6 trillion including ETFs. Bitcoin would have to grow 10 times the current value in the area of around $13,000 to match the precious metal on this indicator.
„Even a modest crowding-out of gold as an ‚alternative‘ currency over longer term stretches implies a double or triple increase in Bitcoin,“ the analysts write.
Over time, they say, Bitcoin may start to hold on to gold for the same reasons that gold is now favoured.
„Cryptov currencies are valuable not only because they are a means of saving, but also because they have practical significance as a means of payment. The more economic agents accept cryptov currencies as a means of payment in the future, the higher their practical significance and value,“ says the report from JPMorgan.
Analysts say that over time, millenniums will become „an increasingly important component of the investment space, and therefore Bitcoin has significant potential for long-term growth.
In August, JPMorgan’s strategist Nicolaos Panigirtsoglu said that during the Coronavirus pandemic, investors are looking for alternative assets and are investing significant amounts of cash in gold and Bitcoin.
In March, the bank’s analysts admitted that the March collapse of Bitcoin was the first serious stress test that he successfully passed.
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