Once again, after Jamie Dimon called Bitcoin a ‘fraud,’ the company has praised the digital coin, calling it a ‘new gold.’
An analyst at banking giant JP Morgan says that Bitcoin “has the potential to elevate cryptocurrencies to an emerging asset class.”
Amidst the growing interest of institutional investors in cryptocurrency, Bitcoin continues to grow spectacularly. According to some experts, Bitcoin may become the new gold, Gold 2.0 if you will, as the digital currency is seen as a more reliable, long-term way to store wealth.
Once again, after Jamie Dimon called Bitcoin a ‘fraud,’ the company has praised the digital coin, calling it a ‘new gold.’ An analyst at banking giant JP Morgan considers that Bitcoin may become a solid asset class. The analyst is of the view that Bitcoin has changed its shape and that it could soon be joining gold.
At the time of writing, the digital currency is trading in excess of USD $15,958 and this recent growth has seen Bitcoin tilting more towards being classified as digital gold. This is where JPMorgan sees its value. Nikolaos Panigirtzoglou, a JPMorgan analyst, believes that the meteoric rise in the value of Bitcoin has enabled it to compete as an asset class; and apparently has dropped out of the currency race. He told the Daily Telegraph that Bitcoin “has the potential to elevate cryptocurrencies to an emerging asset class.”
“The prospective launch of Bitcoin futures contracts by established exchanges, in particular, has the potential to add legitimacy and thus increase the appeal of the cryptocurrency market to both retail and institutional investors,” says Nikolaos Panigirtzoglou.
However, there remains a question that between bitcoin and gold, which one is more popular and safer for investment. Undoubtedly, the yellow metal is considered steady and safe as well as enjoys influence and popularity. Bitcoin has not taken over gold in terms of investment or total value in circulation but it does hold the potential to match or even rise above the use of gold. Despite growing at a brilliant rate, Bitcoin still falls short of Gold’s $6 trillion valuation.
The remarks of JPMorgan analyst are surprising because JP Morgan’s chief executive and chairman, Jamie Dimon has long been a severe critic of bitcoin. Dimon’s stance on Bitcoin indicated that the banks and Bitcoin were in a battle. Banks are wary of Bitcoin as a currency since it may lead people to drift away from the government-backed fiat currency. But Bitcoin that was viewed with relative disdain by figures in the world of traditional finance is now becoming the center of attention of institutional investors.
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