BitcoinBitcoin is the first decentralized digital currency. It was created in 2009, by an anonymous founder or group of founders... More can compete or even replace gold as an investment or store of value? That’s a question that needs time to have certainty, but there are already some predictions about it. The multinational investment bank JPMorgan Chase sent a newsletter to all its customers the past weekend, making its bet about this.
According to the report entitled “Flows & Liquidity. Bitcoin Competition with Gold”, disclosed by some of the bank customers on social media, Bitcoin might be bearish in short term, but it can compete “more intensely” with gold in the near future, thanks especially to the Millenials.
“Although Bitcoin looks currently overbought of our position indicator for the near term, the potential long-term upside for bitcoin is considerable if it competes more intensely with gold as an “alternative currency” we believe, given that Millenials would become over time a more important component of investors universe”.
The company also stated that the price of Bitcoin in long term would be doubling or tripling if “a modest crowding” of the gold market migrates to the alternative currency. Besides, the cryptocurrencyA digital currency running on a blockchain and built with cryptography. Contrary to central-bank issued currency, cryptocurrency issuance rules are... market’s future seems to be bright, since global adoption is increasing.
“Furthermore, we believe the market value of cryptocurrencies could eventually rise beyond what be justified by only valuing them as a store of wealth. Cryptocurrencies derive value not only because they serve as a store of wealth but also due to their utility as a means of payment. The more economic agents accept cryptocurrencies as a mean of payment in the future, the higher their utility and value”.
Regarding this topic, JPMorgan considers the recent PayPal crypto-adoption as an important step for the institutional support of cryptocurrencies.
Global crypto-adoption
We also should remember the main conclusion of the third “Global Cryptocurrency Benchmarking Study” by the University of Cambridge: there are at least “101 million unique cryptoasset users” worldwide.
Compared to the user base presented by the same study in 2018, this is a significant 189% increase. Additionally, we can find now more than 19.000 venues of all kinds accepting Bitcoin and cryptoassets globally, according to CoinMap. The cryptocurrency ATMs are also on the rise, having passed the 10.000 milestone in September. This is an 87% increase from the 5,336 recorded just a year ago.
With these figures, Bitcoin won’t take long to be a hard competition against gold, indeed. The fact that even JPMorgan Chase admits that, after being so critical in the past with the first cryptocurrency, is a really good sign for the crypto-world.
Featured image by WorldSpectrum / Pixabay
Wanna trade BTCAn abbreviation for Bitcoin., ETH, and other tokens? You can do it safely on Alfacash! And don’t forget we’re talking about this and a lot of other things on our social media.
Twitter * Telegram * Instagram * Youtube *Facebook * Vkontakte
