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Bitcoin surpasses gold as an alternative currency and has a significantly better chance of continued growth. Business Insider citing a new report from the US investment bank JPMorgan.
Analysts draw attention to the low capitalization of bitcoin, which, in their opinion, is explained by the fact that the cryptocurrency is chosen mainly by millennials. The older generation prefers to keep assets in tangible form, in particular in gold.
JPMorgan estimates that the physical gold market, including ETF backed by it, is $ 2.6 trillion. Bitcoin, in order to catch up with the precious metal in this indicator, must grow 10 times from the current values in the region of about $ 13,000.
“Even a modest crowding out of gold as an“ alternative ”currency in the longer term implies a double or triple growth of bitcoin,” analysts write.
Over time, they said, Bitcoin could be held for the same reasons that gold is now preferred.
“Cryptocurrencies are valuable not only because they are a store of value, but also because they have practical value as a means of payment. The more economic agents will accept cryptocurrencies as a means of payment in the future, the higher their practical significance and value will be, ”the JPMorgan report says.
Analysts say that over time, millennials will become “an increasingly important component of the investment space, and therefore Bitcoin has significant potential for long-term growth.
Recall that during the coronavirus pandemic, investors are in search of alternative assets and invest significant amounts of cash in gold and bitcoin in August stated strategist JPMorgan Nikolaos Panigircoglu.
Bank analysts in March recognizedthat the Bitcoin crash in March was the first major stress test for him, with which he coped very successfully.
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