According to JPMorgan, the leading financial service provider bitcoin is all set to challenge gold prices in 2021 along with some risks. the current estimated price of the bitcoin money, that is a form of cryptocurrency is a whopping $146k.
To be more clear cryptocurrency can be seen as a digital asset that works as a medium of exchange, in short money of the modern world. The competition between Bitcoin and gold had already set in when the price of Bitcoin touched $3billion inflow and gold $7billion outflow in most Berber in grayscale bitcoin trust and gold ETFs respectively, concludes the organization. although the bitcoin price may get a rise up top to $50k-$100k, it’s still a prediction quite uncertain. even after seeing the rising empire of the bitcoin dynasty, they still say that the $575billion market of bitcoin will have to leap by 4.6times And by theoretically reaching $146K to be able to be compared to the gold market. Stil further away because a part of the bitcoin in the gold market will considerably take a very long time to be finally merged into one. Ring it a multi-Year proudly.
The market cap of bitcoin at $575bn currently would have to rise by x4.6 from here, implying a theoretical bitcoin price of $146k, to match the total private sector investment in gold via ETFs or bars and coins.
Nikolaus panigirtzoglou JPMorgan ’s senior global market strategist Share an interview about his 2021 bitcoin outlook On CNBC’s quick Alley Saying that the current bitcoin bull run is similar to that of 2017 along with some of the undertaken risks. Stating that the first risk considered is about the strong sensus is that the bitcoin prices have to be increased by $50,000-$100,000 in 2021. The gold is so large to be set that it cannot be seen as a reality as imagined. JPMorgan has key roles in banking sactor.
The second risk involves “the investors”, basically the types of investors. Bitcoin investors are not one retailers but also some selective institutional investors. This Is also exactly the point that makes the existing data similar to that of 2017. Panigirtzoglou asserted that the entire bitcoin market was not only driven by the investment of institutional buying or that every institutional buying was a long term investment. Some of the institutional investors invest in the pre-received success of bitcoin. The third risk involves the user. The fact that how many of the people will readily accept bitcoin as a currency exchange? As real money, we are using Today. How many of the merchants and the normal people will be accepting it in 2021 Is a big consideration. Payment giant PayPal owned by Elon Melon has a promising consent to be made that it would enable bitcoin payments to its 28 million merchants worldwide similarly to the real money we use today. Honestly, it would be game-changing if the JP Morgan strategists are not convinced.
Panigirtzoglou still puts a strong argument saying that he doesn’t think that bitcoin will be accepted as a payment system, as a payment currency, particularly in such a short time with such little knowledge, There Has to be a better plan laid for such outcomes to be received. And after also considering the regulatory restrictions and approval. No such massive changes can be seen in the shortly early next year.
At last, it can be concluded by the JPMorgan strategist and by all that this year would mark the change of perception of bitcoin’s digital gold. When seeing it as a payment currency the prices do not need to rise for the bitcoin to be used as a payment currency but there is still so much of time left for it to be used as one. the future beholds a lot of changes. The mannerism of the cryptocurrency will undergo major aeration to be finally used as a mode of payment.