For time immemorial, gold has remained one of the best stores of value. However, a financial analyst with JPMorgan Chase believes that this may change in the future. According to Nikolaos Panigirtzoglou, a research analyst and managing director at JPMorgan, gold will take the backseat as an alternative hedge asset as Bitcoin goes mainstream. Investors are already jostling for the digital asset, and if this trend continues, Bitcoin may outperform gold. The strategists noted:
“The adoption of Bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced. If this medium to longer-term thesis proves right, the price of gold would suffer from a structural headwind over the coming years.”
As reported by BTC PEERS, while gold rose by 10% between August and December 2020, Bitcoin rose by 56% within the same period. Numerous data and expert opinion suggest that there is a major shift to digital assets. Grayscale’s recent interests in digital assets, as well as PayPal’s support for cryptocurrency transactions, are all contributing to this trend.
In general, the outlook for digital assets, particularly Bitcoin appears promising. With increased convenience and reputable players entering the space, the industry is entering a new level of gameplay previously unseen.