Deutsche Bank realizes that Bitcoin is here to stay, calls it “digital gold”
By Bob Garcia
An analyst with the financial institution acknowledges the role Bitcoin has in finance
Although she is clear that Bitcoin (BTC) will always remain highly volatile, Deutsche Bank research analyst Marion Laboure said she believes the popular cryptocurrency has everything it takes to become digital gold in the future. Laboure assures that BTC is here to stay for centuries and that more and more people will be jumping into this space.
Through an update on the website of Deutsche Bank, Germany’s leading banking institution, Laboure made it clear that she could see how BTC has the potential to become the digital gold of the 21st century. However, she did not overlook that its volatility is something that investors need to take into account when it comes to the crypto asset. According to the expert, most BTC purchases are made for investment and speculation purposes rather than holding the coins as a medium of exchange.
“Just a few additional large purchases or market exits can significantly impact the supply-demand equilibrium,” explained Laboure. “[Bitcoin] is too volatile to be a reliable store of value today. And I expect it to remain ultra-volatile in the foreseeable future.”
While it is true that one of Laboure’s biggest concerns is the lack of regulation that cryptocurrencies currently have, as well as their potential impact on the environment, she said that BTC will likely maintain a steady pace, and no other cryptocurrency will be able to knock it off the podium in the coming years. Ethereum may have more use cases in decentralized finance, and a strong movement in the non-fungible token (NFT) space; however, Laboure claims that BTS still enjoys its “first-mover advantage.”
Analysts at Deutsche Bank have said that BTC has such relevance that it is impossible to overlook, suggesting that the cryptocurrency’s price could rise as additional asset managers and companies enter the market.