JPMorgan Switches Tact, Backs Bitcoin as New Gold
JPMorgan starting to see Bitcoin as stable, reliable and a traditional asset class.
After Jamie Dimon drew a line in the sand for JPMorgan, calling it a ‘fraud,’ the company has once again stepped over that line, praising the digital coin as a ‘new gold.’
Analysts at JPMorgan believe that Bitcoin has changed its shape and that it could soon be joining gold as a reliable, long-term way to store wealth. Recent growth and recent changes have seen Bitcoin lean more towards being digital gold, and this is where JPMorgan see its value.
“Potential to elevate cryptocurrencies to an emerging asset class”
According to JPMorgan analyst Nikolaos Panigirtzoglou, the incredible spike in the value of Bitcoin is allowing it to start competing as an asset class; and seemingly at the same time drop out of the currency race.
There are changes afoot in the Bitcoin market, especially when it comes to making the digital currency easier to invest in. 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.”
Still chasing gold
There is an ongoing debate over which is more popular, and if one can kill the other when it comes to talking about investing in gold and Bitcoin. However, the precious metal may be steady and safe, thus not as exciting as Bitcoin, but it still holds a large chunk of influential sway.
Bitcoin still falls short of Gold’s $6 tln valuation, however, it is the speed at which it has grown which is more impressive. The huge growth spurt could make cryptocurrencies match or even surpass gold quite soon as an investable asset.
Good news for banks
Around the time Dimon was spurting his rhetoric on Bitcoin, there was a feeling that the banks and Bitcoin were in a battle royale. The one was being challenged by a young upstart of a digital currency, and losing ground.
Banks were nervous of Bitcoin as a currency and how it could liberate people from the clutches of the government-backed fiat, however, that fight has died down somewhat as the future is now aimed at accumulating the valuable asset.
Instead of a flying in the face of the institutionalized banking system, Bitcoin looks like it has outgrown its angsty teen stages.There is now a literal digital gold rush as the fear of missing out sweeps the globe.