Bitcoin, the must-have in the 21st century – When it comes to Bitcoin, investment bank JP Morgan is becoming more and more talkative. In a new report, she recalls the importance of cryptocurrencies, while highlighting some of their limitations.
Post-Covid finance: banks vs fintech?
According to JPM, innovations related to fintech and the increased demand for cryptocurrencies are the real background story of the changes precipitated by the Covid-19 crisis. This innovation is reflected in the rise of start-ups and the expansion of digital platforms specializing in finance.
According to JP Morgan estimates, there are now 58 fintech companies with a market capitalization of over $ 1 billion . Several of them will therefore soon be at the same level as traditional banks.
Bitcoin’s competition with gold as an ‚alternative‘ currency will likely continue as millennials become a larger component of the investor universe. Indeed, the document indicates their preference for Bitcoin over gold.
“Those who understand Bitcoin well can immediately see its advantages over gold. “
Olivier Deane, Vice-president of JP Morgan
According to him, never in the history of mankind has there ever been a stock of value so easy to buy, sell, store, move or transfer ownership, more or less instantly , anywhere on the planet. planet.
A nuanced analysis
Almost as surprising as Wall Street’s growing interest in Bitcoin is its recent growth. Indeed, in recent years, the New York Stock Exchange has made fun of Bitcoin, in particular by comparing this market to tulipomania .
Today, Bitcoin has overhauled the system. Eh yes ! Despite all its volatility, energy costs, and the fact that it is still far from mainstream , Bitcoin is undeniably popular among millennials. And where millennials go, banks must do the same.
In a note to its clients, viewed by Reuters, the investment bank said that widespread adoption of Bitcoin will gradually increase its correlation with cyclical assets.