JPMorgan says Bitcoin is the next big thing thus marking a long way since its CEO slated cryptocurrencies back in 2017. However, analysts wonder whether their stance is a little too late to be joining to the party? Let’s find out more in today’s Bitcoin news.
JPMorgan says Bitcoin is competing solidly with gold as an alternative asset and it will be down to the Millenials whether the cryptocurrency succeeds. The bank hated Bitcoin initially. BTC is an investment that is solidly competing with gold thanks to the Millenials according to the bank’s report.
Most bullish commentary for #bitcoin that I have read from JP Morgan
Widespread research piece reaches all clients of the bank.
Paypal announcement "cover" for other traditional players to get involved. pic.twitter.com/lUd8oYQ77h
— Dan Tapiero (@DTAPCAP) October 23, 2020
The investment bank that the potential long-term upside for BTC is considerable as the millennials will become over time much more important components of investors’ universe according to a Business insider report. The US biggest bank by total assets added that “even a modest crowding out of gold as an alternative currency over the long term will imply doubling or tripling of the Bitcoin price.”
Despite Bitcoin constantly getting labeled as a store of value, JPMorgan added that the biggest cryptocurrency by market cap will be used for what it was intended to do which is purchase goods:
“Cryptocurrencies derive value not only because they serve as stores of wealth but also due to their utility as means of payment. The more economic agents accept cryptocurrencies as a means of payment in the future, the higher their utility and value.”
Bitcoin is still a small asset class according to the bank and in order to catch up with gold, the value will have to multiply by ten times. Bitcoin’s market cap is about $242 billion according to CoinMarketCap. The gold market is worth several trillion dollars. The bank was initially anti-bitcoin as the CEO Jamie Dimon called it a fraud back in 2017 during an interview. The bank has since become crypto-friendly and speaks very highly of bitcoin in light of the Lebanon protests and approving the banking accounts for crypto exchanges like Gemini and Coinabase.
Two of the leading cryptocurrency exchanges, Coinbase and Gemini, have reportedly received banking services from the largest bank in the United States, JPMorgan Chase. As we can see from a report shared in the cryptonews by Wall Street Journal on May 12, unnamed sources familiar with the matter highlighted that the move is the first time the banking giant has served clients from the crypto industry.
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