Tags in this story
Bitcoin, Bitcoin market value, Bitcoin and gold, cryptocurrency, digital currency, gold, gold ETF, Jamie Dimon, JP Morgan, Paypal, Square Inc.
JP Morgan stated that as the competition between digital cryptocurrency and gold as an alternative currency becomes more intense, Bitcoin’s 2020 will continue to grow. In a note, the financial institution stated that as millennials will become more important market participants in the next few years, their preference for Bitcoin over gold will establish a cryptocurrency for future success.
As financial institutions evaluate, digital currencies continue to be increasingly adopted by institutional investors and are welcomed by companies such as payment giant Paypal.
According to a report, JPMorgan Chase estimates that “the physical gold market is worth US$2.6 trillion, including assets held in gold ETFs.” The financial giant inferred that for Bitcoin to catch up with the gold market value, “cryptocurrencies will It must be 10 times higher than current levels.”
At the time of writing, the market capitalization of Bitcoin is 242.2 billion USD, while the value of one Bitcoin is slightly more than 13,000 USD.
At the same time, its CEO Jamie Dimon (Jamie Dimon), who once labeled Bitcoin as fraud, admitted in the report: “The value of cryptocurrencies is so high not only because they can be used as wealth. Storage, but also because they can be used as a means of payment.”
The financial giant added that as “more and more economic institutions accept cryptocurrency as a means of payment in the future, its utility and value will be higher.”
Although JP Morgan believes that millennials will be the key to Bitcoin’s future success, the increasing adoption of Bitcoin by large companies indicates that the cryptocurrency may bridge the gap with gold faster. Since Square announced its purchase of Bitcoin on October 8, Bitcoin has soared nearly 15%. After Paypal announced the cryptocurrency, the digital currency immediately broke the $13,000 mark.
However, as more and more companies are expected to follow in the footsteps of Square and Paypal by acquiring and holding large amounts of Bitcoin, the resulting reduction in supply will continue to push up prices.
What do you think of JP Morgan’s latest Bitcoin assessment? Tell us what you think in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons