Mark Weaden
JP Morgan Chase decides to back Bitcoin, claiming that the digital currency is a better hedge than gold
This isn’t the first move into cryptocurrency from investment firm JP Morgan Chase, but it is the first of its kind that sees the company publicly back Bitcoin claiming the value of hedging against its inflation is better than gold.
The statement was made in a recent note to investors, claiming that regardless of the volatility of the market, there is continual growth in valuation. This isn’t new information to crypto investors, but it’s certainly exciting to see a long-term financial institution adding credence to the value of Bitcoin.
What did JP Morgan say?
For some time, Investors have been claiming that cryptocurrency will make better returns than gold. But, the volatility of the market has scared many investors off and certainly deterred major investment firms from investing. With Bitcoin trading at $56,550 and holding a market cap of almost $1.1 trillion as of October 11th, it certainly seems very appealing.
A few quotes from JP Morgan’s note read “Institutional investors appear to be returning to Bitcoin, perhaps seeing it as a better inflation hedge than gold,” and that “There are tentative signs that the previous shift away from gold into bitcoin seen during most of Q4 2020 and the beginning of 2021 has started re-emerging in recent weeks.”
With companies around the world now accepting Bitcoin as a form of payment, the moment is with crypto. The fintech industry is designing an ecosystem that will allow for the fluid and rapid transition from fiat currency payments into crypto payments, as well as allowing for cross-currency payments catering to all.
What else is happening in the crypto space?
We have seen companies like Tesla, Dell, Microsoft, Shopify, and even potentially e-commerce giants Amazon following suit by allowing the payment of goods and services using digital currencies.
Cryptocurrency exchanges are seeing a higher influx of new users a month on month, with DeFi exchanges also seeing an upturn in customers so far this year. The concept of DeFi isn’t sold on everyone, but it’s an exciting concept, with DeFi exchanges, or DEXes, seen as the main usage for the DeFi protocol at present.
It’s difficult to know exactly where things will go in the next 12 months. However, the crypto space is extremely exciting and many of the fastest-growing blockchains are starting to get recognized. We’re seeing blockchain technology being used to underpin some of the most important new products and services in development.
