By Tobi Loba
Bitcoin (BTC), the largest cryptocurrency by market capitalization, has been exhibiting a price bull run over the past few days. This positive trend has aided the top digital currency to record its 2020 high at around $13600.
This magnificent performance has made the United States financial giant, JP Morgan, to opine that Bitcoin (BTC) has the tendency to triple its current price as it keeps challenging gold’s status in the world of investment assets.
In a report by Business Insider, JP Morgan stated that Bitcoin has the potential to compete with the precious metal Gold as the preferred alternative currency.
Read Also: Bitcoin (BTC) Has Now Outperformed Gold in 2020 Year-To-Date
Gold currently has a market value of relatively $2.6 trillion. So, Bitcoin needs to increase 10x its current market cap to be on par with the precious metal, but JP Morgan averred that a little decrease in the gap with gold will be notable on the price of Bitcoin.
“Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the bitcoin price.”
According to the US financial giant, what has been aiding the price growth of Bitcoin can be attributed to the shift in demographics, as younger generations now prefer Bitcoin to the precious metal.
“The potential long-term upside for bitcoin is considerable as it competes more intensely with gold as an ‘alternative’ currency we believe, given that millenials would become over time a more important component of investors’ universe.”
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“Cryptocurrencies derive value not only because they serve as stores of wealth but also due to their utility as [a] means of payment. The more economic agents accept cryptocurrencies as a means of payment in the future, the higher their utility and value.”
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