According to Deutsche Bank Research analyst Marion Laboure, Bitcoin is the gold of the twenty-first century.
Deutsche Bank’s Marion Laboure:
“I could potentially see #Bitcoin to become the 21st century gold”
— Bloqport (@Bloqport) September 26, 2021
Laboure made the statement in a video broadcast on Deutsche Bank’s official website, in which the analyst discusses how she believes digital currencies will affect the future of payments.
About Marion Laboure of Deutsche Bank
Marion Laboure is a senior economist and market strategist at Deutsche Bank, as well as a Harvard University professor of economics and finance. She’s given a lot of talks about monetary policy, and Business Insider called her one of the top eleven crypto thinkers this year. The video’s page on the bank’s official website also notes that cryptocurrencies have a market valuation of over a trillion dollars, making them “too vital to ignore.”
According to Laboure, Bitcoin is not the same as traditional fiat currencies, which are backed by governments and used as legal money. Bitcoin, on the other hand, is currently only legal tender in El Salvador.
BTC’s supply is set, with roughly 89 percent already issued, making it a plausible inflation hedge, as many central banks in charge of fiat currency supply have grown their supply dramatically in recent years.
According to Laboure, individuals have always sought assets that are not controlled by governments, and gold has served this purpose for ages.
He expresses himself directly at this point: “And yes, I could potentially see Bitcoin to become the 21st century digital gold”.
According to the analyst, gold has been unpredictable in the past, but bitcoin remains a dangerous asset today, too volatile to be a reliable store of value. For the foreseeable future, he expects it to remain quite volatile.
According to him, around two-thirds of BTC is used as an investment or for financial speculation, with a few large purchases or sells having a significant impact on the supply-demand balance.
Bitcoin’s value will continue to climb or decrease based on what people perceive it is worth, with slight shifts in investor perceptions likely to have a big impact on the price according to Laboure.
Deutsche Bank on Bitcoin
In March, Deutsche Bank produced a paper stating unequivocally that bitcoin had become far too important to ignore, and in November of last year, they admitted that BTC was being used as an inflation hedge.
Indeed, they were already speculating in 2019 that cryptocurrencies might have the capacity to eventually replace fiat currencies.
This is the first time they accept that bitcoin might play a function in the financial markets akin to gold, while they emphasize that there is still a significant difference between gold and bitcoin owing to volatility.
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