Deutsche Bank analyst: Bitcoin will be ultra-volatile but it’s here to stay. For the foreseeable future, a Deutsche Bank analyst believes that Bitcoin will have a “first-mover advantage” over competing cryptocurrencies.
In the future, Marion Laboure, a research analyst at Deutsche Bank, sees Bitcoin as a kind of digital gold. It has lasted for centuries and is mostly independent of official authority.
21st century digital gold
Laboure claimed she could “possibly see Bitcoin becoming the 21st-century digital gold”. She said so in an update on Deutsche Bank’s website on “what’s next” for Germany’s largest financial company. However, investors should avoid the volatility of the crypto asset. The majority of Bitcoin (BTC) purchases, according to the expert, are possible for investment and speculation rather than as a means of trade.
“A few more major purchases or market departures can have a significant influence on the supply-demand equilibrium,” Laboure explained. “Bitcoin is currently too volatile to serve as a dependable store of wealth. And I expect it to stay that way for the foreseeable future”.
If Bitcoin is ‘digital gold’, Ethereum is ‘digital silver’
Despite this, the Deutsche Bank analyst voiced concern about the absence of cryptocurrency regulation. As well as their possible environmental impact. She did, however, suggest that Bitcoin will continue to be the most popular digital asset in the crypto sector. With the rise of non-fungible tokens, Ethereum may find additional applications in decentralised finance. However, Bitcoin retains its “first-mover advantage”.
“If Bitcoin is referred to as ‘digital gold’, Ethereum is referred to as ‘digital silver”.
Bitcoin has already been defined by Deutsche Bank analysts as a cryptocurrency that is “too significant to ignore,” implying that the price of the crypto asset would likely grow as more asset managers and corporations enter the market. By 2030, according to the banking institution, digital currencies will have replaced fiat currency.