Wednesday, October 28, 2020

Bitcoin ushered in a rising market, JP Morgan Chase: Millennials may promote Bitcoin tenfold

 Bitcoin has been above US$13,000 for several days and has achieved its best results since January 2018. The bullish sentiment of Wall Street investment banks and bigwigs followed closely, but it is impossible to keep silent about risks.

Bitcoin has soared, and the voice of singing is coming back.

Last Wednesday, online payment company Paypal announced its entry into the cryptocurrency market. Users will be able to buy, sell and hold cryptocurrencies through PayPal. Bitcoin rose on the same day, hitting a high of $13,100, and continued to fluctuate upward in the next few days. On the 25th, it reached a record of $13,336.

Bitcoin has achieved its best results since January 2018, followed by the bullish sentiment of Wall Street investment banks and bigwigs.

JP Morgan Chase, who has been pessimistic about Bitcoin twice, recently affirmed the future of Bitcoin. Its Global Market Strategy Department pointed out in the latest report that Bitcoin has huge long-term potential and will compete fiercerly with gold. Xiao Mo believes that older people prefer to invest in gold, but young millennials have begun to invest in Bitcoin, and Bitcoin may be regarded as an "alternative currency" in the future.

According to the estimation of JP Morgan Chase’s strategist Nick Penigir Zoglow, the total market value of physical gold such as gold ETFs, gold bars and gold coins (excluding the physical gold reserves held by the central bank) has reached 2.6 trillion US dollars. Part of the market value of gold can push the price of Bitcoin by at least 2-3 times, or even ten times, and there is a lot of room for growth.

At present, the market value of Bitcoin remains at around $240 billion, which is indeed more than 10 times the difference from the $2.6 trillion gold market value. In addition, Bloomberg also gave a judgment on the market value of Bitcoin in its previous analysis report. The report stated that Bitcoin has entered an upward cycle. According to the previous market rules, it is expected to reach a market value of $100,000 by 2025.

Singing well doesn’t stop there. Billionaire Paul Tudor Jones said last Thursday that buying Bitcoin “is like investing in Steve Jobs and Apple, or investing in Google early.” Jones believes that Bitcoin will Will be the best defensive asset with a bright future. At the same time, Novogratz believes that digital currency will not become a transaction currency within 5 years.

The regulatory environment of Bitcoin determines that it is difficult for it to rise to the status of trading currency. At present, Bitcoin is only used as a virtual commodity, not as a currency subject to legal protection of various countries. This will be a threshold for investors to enter the market and lack legal protection. Means greater risk.

In addition, looking at the historical price of Bitcoin, the peak at the end of 2017 was close to $20,000, but at the end of 2018 it fell to near the bottom of $3,000. The price fluctuated greatly, which was not within the range of ordinary investors.

Bitcoin has potential room for growth, but to achieve this growth, resistance is not small.

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