3 years ago Bitcoin was called by the CEO of JP Morgan “a fraud”. Now, the same bank takes a positive view of the cryptocurrency as a new report demonstrates.
In a recent report, the American bank made an analysis of bitcoin and its possible future scenarios by analyzing the price and its fundamentals. According to the analysis, the price of btc has a chance to rise even more.
Bitcoin can rise 3 times with little movement
The bank compares bitcoin to gold and says the gold metal market is $ 2.6 trillion. In comparison, the capitalization of btc is $ 242.62 billion, that is, for bitcoin to reach the market value of gold it would take a 10-fold growth.
But that doesn’t mean anything negative for the crypto, on the contrary, for JP Morgan it shows the potential of cryptocurrency.
“Even a modest exit from gold investors as an ‘alternative’ currency in the long run would mean doubling or tripling the price of bitcoin “, These o JPMorgan.
And the bank recognizes that cryptocurrencies are not just a store of value, they also serve as a utility in transfers and this characteristic can also influence the price increase:
“Cryptocurrencies get value not only because they serve as deposits 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 greater their usefulness and value ”
Bitcoin is a generational issue
The adoption of cryptocurrencies is also linked to the generation, the millenials that today are a small slice of the active economy will, over time, take the reins and this will be a great incentive for the use of crypto.
“The long-term upside potential for bitcoin is considerable, as it competes more intensely with gold as an ‘alternative’ currency, we believe, as the millennial generation will eventually become a more important component of the investor universe”
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