JPMorgan, the world's largest investment firm, is optimistic about the direction of Bitcoin (BTC) digital assets, considering the currency has the potential to jump higher. The assumption was prompted by PayPal's recent announcement of support for cryptocurrencies.
According to a statement from JPMorgan's global market strategy unit revealed on the social media site Twitter, the situation is not impossible if the digital asset competes with gold as a trusted alternative currency.
For now, there is a huge value gap between the two assets. At least $ 2.6 trillion is still deposited in exchange-traded funds (ETFs) and bars.
Meanwhile, the market capitalization of BTC remains at $ 240 billion.
JPMorgan believes that the surge can occur with three main factors: -
- Bitcoin needs to jump 10 times to reach the same level in gold investment.
- Cryptocurrencies have higher utility than gold.
- BTC has been able to attract millennials for a long time.
The announcement of PayPal and the increase in institutional demand for digital assets at the same time has opened a new notion of Bitcoin as a safe-haven asset.
The record of the American population that has bought Bitcoin is only 7% and some major markets such as Canada still lack the exchange market. In fact, most major banks have not yet submitted custody of crypto assets despite being a hot topic in 2020.
Looking at the use of bitcoin which is still in its infancy in terms of infrastructure, development and mainstream use, BTC has room to continue to grow. At least in 5 to 10 more years for BTC to 'rise' on par with the gold position.
