Deutsche Bank analyst: Bitcoin is ‘ultra-volatile’ but it’s here for the long haul

Deutsche Bank’s research division believes that Bitcoin will have a “first-mover advantage over other cryptocurrencies in the near future. An analyst at Deutsche Bank’s Research Division, Marion Laboure, stated that she can see Bitcoin becoming the 21st-century digital gold. However, she cautioned investors about the volatility of the crypto asset. According to the analyst, most Bitcoin purchases (BTC), are for speculation and investments rather than for exchange. Laboure stated that “just a few more large purchases or market exits could significantly impact the supply/demand equilibrium.” “[Bitcoin] today is too volatile to be a reliable value store. And I expect it will remain ultra-volatile for the foreseeable future.” The Deutsche Bank analyst expressed concern over the lack of regulation regarding cryptocurrencies and their potential impact on the environment. However, she suggested that Bitcoin would likely continue to be the dominant digital asset in crypto space. While Ethereum may have more uses in decentralized finance, and with the rise of non-fungible tokens (which is what the analyst at Deutsche Bank said), Bitcoin would likely remain the dominant digital asset in the crypto space. Related: Bitcoin ‘pushing aside gold as a store-of-value’ Deutsche Bank analysts previously described Bitcoin as a cryptocurrency that was “too important not to ignore”, suggesting that the price for the crypto asset will likely rise as more asset managers and companies enter the market. The financial institution predicted that digital currencies will replace fiat by 2030 in 2019.

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