a report from JPMorgan's Global Markets Strategy section discusses three possible reasons for the potential for the long-term rise of Bitcoin (BTC).
JP Morgan, the $ 316 billion investment banking giant, said Bitcoin's potential long-term uptrend is significant.
This new optimistic stance toward the dominant digital currency comes after PayPal allowed its users to buy and sell digital currency assets.
Bitcoin's gold competition
The main factor put forward by JPMorgan's Global Markets Strategy division is Bitcoin's competition with gold.
where the note obtained by Business Insider states the following: We believe that the long-term potential rise in Bitcoin is significant if it competes intensely with gold as a currency ( Alternative), and given that millennials will, over time, become a more important component of the investor world.
Analysts have also identified the large valuation gap between Bitcoin and gold. It is said that at least $ 2.6 trillion is stored in gold and bullion exchange-traded funds (ETFs). In contrast, Bitcoin's market value remains at $ 240 billion.
JPMorgan's note basically emphasized three main reasons to support Bitcoin's long-term growth potential. First, Bitcoin must rise 10 times to match private sector investment in gold. The second is that digital currencies are highly beneficial. Third, Bitcoin could attract millennials in the long run.
After the integration of cryptocurrency purchases with PayPal and the rapid increase in institutional demand, Bitcoin is increasingly being seen as a safe asset.
There is a big difference in valuing gold and Bitcoin. Although the former has been recognized as a safe asset for a long time, Bitcoin has many distinct advantages.
where JP Morgan analysts said: Technically, the market value of Bitcoin should rise 10 times from here to match the total private sector investment in gold through funds Investing traded or bullions and currencies ...
