An analyst at global banking giant Deutsche Bank expects Bitcoin to have a “first-mover advantage” over other cryptocurrencies in the near future.
Marion Laboure, an analyst at Deutsche Bank’s research department, said she could imagine Bitcoin taking over the role of digital gold in the future: it would last for centuries and to a large extent won’t be controlled by the government.
In a Deutsche Bank website update on “what’s next” for Germany’s largest banking institution, Laboure said it could “potentially see Bitcoin become 21st century digital gold,” but warned investors against the volatility of crypto assets. According to the analyst, most of the purchases of Bitcoin (BTC) are made for investment and speculation, and not for keeping coins as a medium of exchange.
“Just a few extra, large purchases or sales in the market can significantly affect the supply-demand balance,” said Laboure. “Bitcoin is too volatile today to be a reliable store of value. And I expect it to remain very unstable in the foreseeable future. “
While a Deutsche Bank analyst has expressed concern about the lack of cryptocurrency regulation as well as their potential environmental impact, she has suggested that Bitcoin is likely to remain the dominant digital asset in the cryptocurrency space. Ethereum may have more use cases in decentralized finance and as the number of non-convertible tokens (NTF) increases, but Bitcoin still enjoys the “first-player advantage”.
“If Bitcoin is sometimes called” digital gold “, Ethereum would then be” digital silver. “
Deutsche Bank analysts previously described Bitcoin as a cryptocurrency “too important to ignore’’, suggesting that the price of cryptocurrencies is likely to rise as additional asset managers and companies enter the market. In 2019, the financial institution predicted that digital currencies would replace fiat by 2030.
27-09-2021, Mr Advice TEAM