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Bitcoin May Replace Gold In The Future – JPMorgan

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Bitcoin & JPMorgan’s Jamie Dimon “There’s a lot of people who think it Will be Worth More Then Gold”

Bitcoin May Replace Gold In The Future - JPMorgan

Bitcoin May Replace Gold In The Future – JPMorgan
CONTENT

  • JP Morgan is confident that bitcoin will rise in price

  • Bitcoin may replace gold as an alternative currency in the future

  • Bitcoin price will rise with millennials

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Analysts at JPMorgan claim that Bitcoin may replace gold as a defensive asset in the future. Even a slight displacement of gold as an alternative currency would mean doubling or even tripling the price of bitcoin..

Bitcoin May Replace Gold In The Future - JPMorgan

Bitcoin is growing with millennials

The main cryptocurrency Bitcoin can become an alternative to gold. This is the conclusion made by JPMorgan analysts. According to experts, in the next decade, the price of military-technical cooperation may rise significantly. Several factors will contribute to this..

First, Bitcoin, like gold, is a scarce asset. The world’s physical gold market is valued at $ 2.6 trillion today, including assets held in gold ETFs, according to JPMorgan research. Of course, the cryptocurrency sector is dozens of times smaller, but bitcoin also has a limited supply of coins, which makes it as scarce as the precious metal. Therefore, both gold and bitcoin can be used to store savings from inflation. For example, companies like MicroStrategy and Mode have already invested some of their profits in Bitcoin. Business representatives see cryptocurrencies as an alternative way to protect assets from dollar inflation.

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Secondly, bitcoin can be used as a payment asset. Practice shows that since the onset of the coronavirus epidemic, more and more organizations begin to accept payments in cryptocurrency. This fact is confirmed by data from JPMorgan.

Bitcoin May Replace Gold In The Future - JPMorgan

“Cryptocurrencies gain value not only because they serve as a store of wealth, but also because of their usefulness as a means of payment. The more economic agents accept cryptocurrencies as a means of payment in the future, the higher their utility and value, “the company explained..

Third, the class of investors will change. And if today the market is dominated by investors who invest in classic assets, then over time they will be replaced by millennials. They this group of people will actively promote and support bitcoin, pushing the price of cryptocurrency up.

Gold is on a par with Bitcoin

Despite the bright prospects for Bitcoin, one should not discount gold, which has proved to be a defensive asset during the coronavirus pandemic. Experts assure that for a few more years bitcoin will not be able to bypass the precious metal in popularity. This was also previously stated by representatives of JPMorgan.

According to a study by experts, investors in general are interested in alternative assets, but the results differ in different age groups. Thus, representatives of the older generation are more inclined to seek salvation in gold, while young investors are more likely to opt for bitcoin. These results were shared by a group of analysts at JPMorgan Chase, which recently conducted an analysis of investment flows..

This opinion is shared by Mike Novogratz, Peter Schiff and Robert Kiyosaki. In particular, the author of the bestselling book “Rich Dad Poor Dad”. In an interview, Kiyosaki stated that he prefers to invest in gold. This statement was made by Kiyosaki at a time when gold rose in price, exceeding the historical high of recent years, exceeding the $ 1800 mark..

Mike Novogratz, director of Galaxy Digital Holdings, shares the same opinion..

Bitcoin May Replace Gold In The Future - JPMorgan

“It seems to me that bitcoin is superior to [gold], but I would advise people to have a lot less bitcoins than gold, precisely because of the volatility,” Novogratz said..

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