Bitcoin outperforms gold as an alternative currency and has significantly greater prospects for further gains, according to Business Insider citing a new JPMorgan report.
Analysts point to Bitcoin’s relatively small market capitalization, which they say stems from the fact that the cryptocurrency is predominantly chosen by millennials. The older generation prefers to hold assets in physical form, notably gold.
According to JPMorgan, the volume of physical gold market, including ETFs backed by gold, totals $2.6 trillion. Bitcoin, to match the metal by this metric, would have to rise tenfold from its current levels around $13,000.
“Even a modest displacement of gold as an ‘alternative’ currency over the longer term implies a doubling or triple rise in Bitcoin,” the analysts write.
Analysts say that, over time, millennials will become an increasingly important component of the investment space, and therefore Bitcoin has substantial potential for long-term growth.
In August stated JPMorgan strategist Nikolaos Panigirtzoglou that during the coronavirus pandemic investors were seeking alternative assets and pouring substantial cash into gold and Bitcoin.
In March, the bank’s analysts acknowledged that Bitcoin’s March plunge was its first major stress test, and it weathered it quite successfully.
Subscribe to ForkLog news on Telegram: ForkLog FEED — the full news feed, ForkLog — the most important news and polls.