Deutsche Bank analysts say Bitcoin could become the ‘digital gold of the 21st century’

Bitcoin has the potential to become the “digital gold of the 21st century,” despite cryptocurrency volatility. Market strategist Marion Labour of the financial conglomerate Deutsche Bank expressed this view.

“People have always sought assets that are not controlled by governments. Gold has played that role for centuries,” Labour explained.

According to her, about two-thirds of Bitcoin buyers use it for investment and speculation, rather than as a means of payment or exchange.

She noted that a few large purchases or sales on the crypto market could influence the balance of supply and demand.

“Bitcoin is too volatile to be considered a reliable store of value,” Labour emphasised.

The strategist also identified the lack of regulation as the main issue for cryptocurrencies. Another drawback of digital assets, in her view, is the environmental threat. However Labour believes the situation will improve in the coming years.

In March, Deutsche Bank analysts said that Bitcoin will continue to rise as it attracts new major investors. The bank called the asset “too important to ignore”.

Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analytics.