Following the recent PayPal announcement and continuous dominance of cryptocurrency, JP Morgan expressed the strong long-standing prospect of Bitcoin.
A strategist of JP Morgan was heard revealing stiff competition from gold as an alternative form of currency. The latest estimation showed a gaping difference as Bitcoin stands at $240 billion in the stock market. On the other hand, the exchange rate of gold is worth $2.6 trillion. Nonetheless, JP Morgan seems confident about winning over the millennial as potential investors of Bitcoin.
Bitcoin Versus Gold
JP Morgan has categorized a few points to establish a positive and long-lasting growth of Bitcoin over the years.
1. As the millennial is the potential investor, Bitcoin is bound to be favored by them over gold. A millennial will definitely choose cryptocurrency as a reliable substitute for mainstream currency.
2. There is an expected imbalance between the supply and demand patterns in gold investments in the future. This will create a huge improvement in investment for Bitcoin.
3. Current investment from non-governmental enterprises in stock market shares of gold is ten times more than investments in Bitcoin. This is likely to change in the future.
4. Rapid growth in investments for Bitcoin in the week following the announcement of PayPal speaks volumes. Investors from all sectors have shown a massive interest in cryptocurrency.
5. Unlike gold, Bitcoin possesses a blockchain system of functioning. Blockchain is a specialized format of record to maintain the transactions made in cryptocurrency across a wide network of computers. However, gold has to be physically transported from place to place.
It’s clear that cryptocurrencies like bitcoin are gaining more and more popularity as the world increasingly becomes more digital.
Ups and Downs of Bitcoin
A mere 7% of US citizens possess Bitcoin. In several markets, cryptocurrency lacks an organized network that requires proper infrastructure.
Jamie Dimon, Executive official and chairman at JP Morgan, retracted his earlier statement regarding Bitcoin. He expressed his regret and belief in the future of cryptocurrency.
Bitcoin witnessed a sudden decline on October 25, firstly, because of standing in a resistance zone of $13,300 and $13,500. Secondly, a neutralizing move from stock market variables, and lastly, unpredictable changes in weekend transactions.
Last week was a huge success for Bitcoin investors considering the ascent to $13,300 and a week-long culmination at $2,000. Investors experienced a significant price break of $12,000.
Technical corrections might pull down Bitcoin to a range of $11,600 to $12,000. This range acts as a backing zone, while $13,500-14,000 is the resistance zone.
Maintaining these ranges help in steady developments and beginning new cycles. Once Bitcoin manages to break through these ranges, it can witness its highest price at $17,000.