Crypto is now more important for gold for Millennials
By Bob Garcia
A study by JP Morgan shows that Millennials are increasingly more interested in digital currency
JP Morgan believes bitcoin value with continue to climb through 2020 as digital cryptocurrency offers an alternative to gold. The financial firm states in a new study that, as Millennials invest more in the stock market, their preference for cryptocurrency will fuel its success.
This comes as the digital currency is being accepted by institutional investors and corporations such as Paypal. JP Morgan CEO Jamie Dimon, who in the past labeled Bitcoin a fraud, now says, “Cryptocurrencies derive value not only because they serve as stores of wealth but also due to their utility as means of payment. The more economic agents accept cryptocurrencies as a means of payment in the future, the higher their utility and value.”
Bitcoin looks to be worth the risk over time. “The potential long-term upside for bitcoin is considerable as it competes more intensely with gold as an ‘alternative’ currency we believe, given that Millennials would become over time a more important component of investors’ universe,” the JPMorgan report concluded.
Bitcoin’s value increased by 15% since Square announced its bitcoin purchase on October 8, and following PayPal’s cryptocurrency announcement, the digital currency increase in value to surpass $13,000. With more corporations expected to follow the trend being set by Square and PayPal of acquiring and holding large quantities of bitcoin, the shrinking supply of bitcoin will only push the price higher. While gold has been the standard for decade after decade, it looks like cryptocurrencies will have the brightest future.