JPMorgan, the $316 billion investment banking giant, said the potential long-term upside for Bitcoin is "Considerable." This new optimistic stance towards the dominant cryptocurrency comes after PayPal allowed its users to buy and sell crypto assets.
"The potential long-term upside for bitcoin is considerable if it competes more intensely with gold as an 'alternative' currency we believe, given that Millenials would become over time a more important component of investors' universe."
JPMorgan's note essentially emphasized three major reasons to support the long-term growth potential of Bitcoin.
First, Bitcoin has to rise 10 times to match the private sector's gold investment.
Following the integration of crypto purchases by PayPal and the rapid increase in institutional demand, Bitcoin is increasingly being viewed as a safe-haven asset.
There is a massive difference in the valuation of gold and Bitcoin.
"Mechnically, the market cap of bitcoin would have to rise 10 times from here to match the total private sector investment in gold via ETFs or bars and coins."
One of the advantages Bitcoin has over gold is utility.
As seen in many cold wallet transfers, it is easier to move $1 billion worth of capital on the Bitcoin blockchain than with physical gold.
Large banks are yet to provide custody of crypto assets, and that gives Bitcoin a large room to grow in the next five to ten years.
JPMorgan turns bullish on Bitcoin citing 'potential long-term upside'
Publié le Oct 24, 2020
by Cointele | Publié le Coinage
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