Deutsche Bank – Demand for Bitcoin Has Started Eclipsing Gold
Deutsche bank, Germany based multinational investment bank, has stated that a lot of people are selecting Bitcoin over gold to safeguard their cash.
A note on the Frankfurt headquartered Zerohedge, published by Deutsche bank, indicates that there is a rising trend of investors viewing Bitcoin as an authentic store of value.
Jim Reid, an analyst at Deutsche Bank, highlights Bitcoin’s latest momentum as proof of the progressing investor attitude.
“Bitcoin is up another +3% overnight and seems to be creating momentum of its own. It’s up over 70% over the last six weeks as more and more investors are starting to see it emerge as a credible asset to invest in.”
Reid also pointed out that Bitcoin may be surpassing gold as the numero uno hedge against inflation for those who are searching for a credible option to safeguard their liquid funds.
“There also seems to be an increasing demand to use Bitcoin where Gold used to be used to hedge Dollar risk, inflation and other things.”
Overall, gold has gained 26.37% y-o-y, while Bitcoin (BTC) has rallied 120% during the same period.
In late-October, JP Morgan stated that it is also considering Bitcoin as a credible substitute for gold, which is currently regarded as the major option available for banks to offset risk related to greenback. The US headquartered investment banking behemoth trusts that Bitcoin could be a better choice, particularly among millennial.