Bitcoin could triple in value and challenge gold: J.P. Morgan analysts


Interestingly, J.P. Morgan’s analysts suggest Bitcoin could triple in value if current trends continue, potentially foisting it to the heights of gold. That said, it has pointed out that gold dwarfs the cryptocurrency in total investment capital. Gold is valued at $2.6 trillion while Bitcoin is worth $240 billion.

“Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the Bitcoin price from here,” wrote J.P. Morgan analysts in a research note to investors.

The note also correlated Bitcoin’s success to millennials, who are beginning to adopt the cryptocurrency in increasing numbers and consider it digital gold. It is no mistake that gold commercials are aired on channels that cater to older demography. As J.P. Morgan relates, there has been a generational shift in trading habits.

“The older cohorts prefer gold, while the younger cohorts prefer Bitcoin as an ‘alternative’ currency,” according to the analysts. Enthusiasm certainly increased for Bitcoin as a recent Charles Schwab survey revealed that Grayscale’s GBTC trust’s positions in Bitcoin proved to be more popular than Netflix or Disney.