Investors see the world’s leading cryptocurrency as a hedge against inflation and an alternative to the depreciation of the dollar. Its price has tripled in the past six months to a record high above $ 36,000.
The Bitcoin competition with gold has already started on our minds.JPM strategists said in a note, citing a recent $ 7 billion gold leak and more than $ 3 billion in revenue at Grayscale Bitcoin Trust.
It could mark a new dawn of the volatile digital currency after years of being viewed as a game for retail speculators and gamblers.
“Given the size of financial investment in gold, displacing gold as an” alternative “currency means a great advantage for Bitcoin in the long term.Male JPM.
JPM added that Bitcoin is likely to overtake gold as millennials become a more important component of the investment market, over time and as they prefer “digital gold” over traditional bullion.
With a market value of $ 575 billion, The bitcoin price would need a nearly five-fold jump to $ 146,000 to equal the value of the gold’s own wealth in gold bars, coins, or ETFs.Bank note added.
JPM strategists said the advantage is contingent on bitcoin’s long-term volatility with gold.
Although the JPM sees the possibility that the “current speculative mania” will push Bitcoin to between $ 50,000 and $ 100,000, it has warned that these levels will prove unsustainable until their volatility stabilizes.
“We note that the staggering rise in Bitcoin in recent weeks has brought it into a more challenging area, not only in terms of its location, but also in terms of valuation.”The bank said.