Deutsche Bank believes bitcoin could become the new gold

At the same time, the bank does not see the asset as a means of payment

20.02.2022 - 07:30

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1 min

What’s new? Deutsche Bank analyst Marion Laboure stated that bitcoin could become the digital gold of the 21st century and a safe haven asset for many investors if the cryptocurrency is officially adopted. The expert noted that she does not consider bitcoin to be a means of payment and does not think it has deflationary characteristics.

Information on the Deutsche Bank website

What does Laboure say? The analyst believes that the asset will remain ultra-volatile in the foreseeable future. She added:

“First, about two-thirds of bitcoins are used for investments and speculation. Second, due to its limited tradability, just a few additional large purchases or market exits can significantly impact the supply-demand equilibrium. Third, bitcoin’s value will continue to rise and fall depending on what people believe it is worth.”

What prospects does Laboure talk about? Comparing Bitcoin and Ethereum, the analyst called the former “the pioneer” because of its much larger market capitalization. She also sees Ethereum as a possible digital silver because of its many applications and uses cases, citing DeFi and NFT. She believes that, for the same reasons, another cryptocurrency is unlikely to become stronger than Bitcoin and Ethereum in the next 5 years.

“In terms of regulatory measures, we expect 2021 to be a game-changer and that by 2022 many economies will have a strong crypto asset regulatory framework in place.”

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