On Friday JP Morgan stated: “Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the Bitcoin price”. The investment bank and financial services company added: “The potential long-term upside for Bitcoin is considerable as it competes more intensely with gold as an ‘alternative’ currency we believe, given that Millenials would become over time a more important component of investors’ universe.” Speaking to Express.co.uk Bitcoin pioneer Max Kesier claimed: “Money is flowing out of gold and into Bitcoin by institutions.”
He added: “Market pundits like Peter Schiff are looking quite foolish now as the market recognises Bitcoin is superior to gold as a store of value.
“Gold is not absolutely scarce like Bitcoin, so its use as a store of value is now permanently in decline against Bitcoin”.
Konstantin Anissimov, Executive Director, CEX.IO also suggested investors are moving to Bitcoin instead of using gold ETFs (exchange-traded funds) as a safe haven.
A gold ETF is where a trader buys an asset backed by gold rather than buying the physical commodity itself.
Speaking to Express.co.uk he claimed: “The declining gold ETFs are bringing thoughts of Bitcoin becoming a new safe-haven asset, the way gold is, closer to reality.
“Despite the weakness of the US dollar subsequent to the US presidential elections, gold had only risen for a couple of days to only fall sharply from 9th November to September lows.
“Meanwhile, Bitcoin has been growing strongly on the back of the US dollar weakness, caused by the expectations of a larger fiscal stimulus for the American economy, with the Democrats coming into the White House, compared with the measures proposed by Donald Trump’s administration.
“The recent bullishness of Bitcoin against the declining gold ETFs has certainly been luring more attention from the investing society to the flagship cryptocurrency, especially amid the rising inflationary risks and deepening global economic crisis and the second wave of COVID-19 and resurgence of lockdown measures around the world.
“The second is that public companies are now realising they better get on board.
“Companies such as Micro Strategy and Square.
“Also, there is the input of legendary investors like Stan Druckenmiller who have been publicising that they’re bullish.”
The Bitcoin price as of Friday 13 November is £12,366, and its price has steadily increased in the last month.