2021 has been an excellent year for crypto adoption. As per the Chainalysis report, the crypto transaction volume has surpassed $15 trillion, which is over a 500% increase since 2020. And now JPMorgan says that crypto adoption will increase further in 2022. This is great for the markets, and investors will also benefit as the price increase of assets becomes inevitable with more adoption.
JPMorgan on crypto adoption in 2022
In a recent note to clients, an equity research analyst from JPMorgan said that more mainstream companies and investors will adopt crypto this year. 2022 also has the potential of becoming the “year of blockchain bridge.” JPMorgan also believes that Bitcoin is a modern store of value, and its robust design has led to increased confidence and the value increase of Bitcoin.
The analyst also drew the comparison with Gold and said that the history of the asset makes Bitcoin still short of that reputation. Another point is volatility, which makes Bitcoin a very difficult asset to be used as a currency. In fact, in some cases, it becomes unusable as a currency. But despite this, the value of Bitcoin has increased consistently over the years.
JPMorgan’s belief in crypto in 2022 is also solidified by the fact that they recommend Coinbase as a buy this year. Since the success of Coinbase is directly proportional to crypto’s growth in 2022, we should be positive. JPMorgan’s views on Bitcoin also align with Goldman Sachs as they are positive as well that BTC will eventually rise to $100k.
We should stop comparing Bitcoin to Gold
Many say that Gold is a store of value, but if you see, it has failed miserably over the last decade. In case you switch to an even larger time frame than since the 1980s, the inflation-adjusted value of Gold is lower now. It’s not all bad and does give stability to one’s portfolio. At the same time, Gold also has many physical use cases like in electronic equipment and as Jewelry.
On the other hand, we have Bitcoin that is volatile and is only a decade old. In terms of the trust, Gold wins but in terms of fundamentals, Bitcoin does. It has proven itself in the last 10 years. At the same time, BTC is much easier to store and transfer when compared to Gold making it more practical.
Do you think Crypto adoption is likely to increase in 2022? And if yes, what is your reasoning behind the same? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.