The US bank JP Morgan expects that Bitcoin will convert into digital gold, which could raise its price to 146 thousand dollars. Investment bank JP Morgan confirmed that the digital currency Bitcoin has emerged as a competitor to gold and its price may rise by about $ 110 this year.
The American bank believes that Bitcoin may reach high levels of 146 thousand dollars if it consolidates its position as a safe investment asset. Interest in the world's largest cryptocurrency has increased as investors view Bitcoin as a hedge against inflation and an alternative to the depreciation of the dollar. The demand to buy Bitcoin has increased three-fold in the past six months, reaching a record high of $ 34,800 on January 2. Economists at JP Morgan said they were already considering competing cryptocurrency with a formation of the yellow gold metal. These experts confirmed outflows of $ 7 billion in gold and $ 3 billion to the hedge fund "Gray Skill Bitcoin Trust".
This could lead to a new dawn for the volatile digital currency Bitcoin, after its circulation for years was restricted to individual speculators and retail investors. JP Morgan explained that the inflation of financial investment in gold means the displacement of gold and a large rise in the currency of bitcoin in the long term. Bitcoin is likely to outperform gold as millennials become, over time, a more important component of the investment market.
The market capitalization of cryptocurrencies is currently $ 575 billion, so the price of Bitcoin needs to rise 5-fold to exceed $ 146,000.