After Jamie Dimon came out strongly against Bitcoin a few months ago, calling it a “fraud”, analysts within the company have once again stepped over the line, saying that Bitcoin has the potential to become the digital gold.
Analysts at JPMorgan believe that Bitcoin can soon become a reliable and trustful way to store wealth. The recent growth which saw Bitcoin go past $12,000 along with the news that some major financial exchanges will start trading Bitcoin Futures have contributed to changing the perspective of many analysts working on Wall Street.
Drop out of the currency race and become an asset class
Nikolaos Panigirtzoglou, analyst at JPMorgan, declared that the incredible spike in the price of Bitcoin could allow the cryptocurrency to start competing as an asset class rather than as a currency.
Additionally, there have been recent changes in the market that will lead to a larger adoption of the cryptocurrencies, such as the launch of Bitcoin Futures. Panigirtzoglou said:
“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.”
There is an on-going debate over which store of wealth is more popular – Bitcoin or gold – and which will eventually prevail. Regardless of how popular Bitcoin is, the total valuation of gold still stands at $6 trillion, whereas that of Bitcoin is still in the order of hundreds of billions. However, one important aspect to consider is the rate at which Bitcoin and the cryptocurrency market has been growing, which has been highly impressive. If it was to keep growing at the rate, it would be quite likely that Bitcoin will overcome gold as the main store of wealth one day.
After banks have openly refused to accept Bitcoin as something legitimate and worth taking into consideration, there has been a change in attitude over the last few weeks as financial professionals have started to realise that they might miss out on a huge opportunity to make unbelievable profits.