Some analysts at JPMorgan announced that Bitcoin could soon be considered as new gold. This digital currency would become more reliable and could even store wealth in the future. Read our article for more details!
What is Bitcoin, “Bubble Territory” or “New Gold as JPMorgan announce ”?
According to Wayne McCurrie, he believes that Bitcoin is a digital version of gold. At the moment, Bitcoin and gold are apparently similar because they are not under the control of the government. However, Bitcoin has existed for only a couple of years, whereas Gold has been a valuable commodity for over 5000 years. If Bitcoin becomes a true success, this digital currency would be under the legislation.
Moreover, according to JPMorgan analyst Nikolaos Panigirtzoglou: “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.” Bitcoin seems to have a bright future and might soon be under the control of laws.
On the other hand, Forbes has also claimed that Bitcoin price “has most of the elements of a bubble” and will ultimately burst. At the moment, there are a lot of opinions about the future value of Bitcoin. Some people predicted that the too rapid growth of Bitcoin price beyond $3000 would create the hazard of extreme volatility. Besides, as the USD decreased by 12%, gold and Bitcoin increased by 4% and 3% respectively. This means that gold is a safer asset to choose, and Bitcoin is close behind.
Will Bitcoin overtake gold and silver?
Because of the increasing value of Bitcoin, some online businesses have just switched to operate solely with the e-currency. It is very likely that Bitcoin is becoming better known throughout the world. We expect that this digital currency would soon surpass precious metals due to the increasing users.