JP Morgan Chase Backs Bitcoin, Says Cryptocurrency Better Hedge Than Gold
In its note to investors, JP Morgan Chase, a US-based investment banking firm, talked mostly about Bitcoin and stated that investors consider cryptocurrency to be a better hedge than gold against inflation as it constantly increases in value.
Several investors have already said that cryptocurrency is a better hedge than gold as it promises fast returns and its storage for future value is much easier compared to gold. On the other hand, bitcoin is still an extremely volatile asset as there is still no regulation in the cryptocurrency market.
As of October 11, the trading value of bitcoin was $56,480.
A note that American investment banking firm JP Morgan Chase sent to investors stated:
“Institutional investors appear to be returning to Bitcoin, perhaps seeing it as a better inflation hedge than gold.”
The firm further added:
“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.”
The founder of Dell Technologies argues that blockchain is underrated
Dell Technologies founder Michael Dell, in a recent interview dated October 10, stated that blockchain technology is underrated. Dell Technologies is one of the first firms in the world that accept bitcoin as a valid payment method. In its comments, Dell asserted more promise for cryptocurrency investors. The company, which started accepting bitcoin as early as 2014, aims to improve itself in parallel with developments in blockchain networking technology. Dell Technologies aims to boost its business in data infrastructure by creating premium storage drives.
The hype around crypto assets is constantly increasing on a global level. The market is already huge and keeps witnessing massive growth. Each day another company announces its crypto acceptance as a payment method in exchange for its products and services. Tesla was one of the biggest companies that announced its bitcoin acceptance. Elon Musk, Tesla’s CEO, announced it in March 2021; however, the electric vehicle manufacturer announced in May 2021 that it would no longer accept crypto assets due to concerns about the impact crypto mining has on the environment. Wikipedia, Shopia, and Microsoft are among many other major companies that accept cryptocurrency in the payment phase.
There was a shift away from gold towards bitcoin at the end of 2020 and the beginning of 2021 on the investors’ side. JP Morgan Chase claimed similar signs to the previous shift have appeared in recent weeks. The announcement by the American investment banking firm supports many bitcoin investors who had already mentioned the advantages of cryptocurrencies over gold.