Deutsche Bank analyst: Bitcoin will be ‘ultra-volatile’, but it’s here to stay

Marion Laboure, analyst at Deutsche Bank’s research division, said she could imagine Bitcoin playing the role of digital gold in the future: for centuries and largely unchecked by the government.

In an update to Deutsche Bank’s website on ‘What’s next’ for Germany’s largest banking institution, Laboure said she could ‘potentially see Bitcoin become the digital gold of the 21st century’ , but warned investors about the volatility of the crypto asset. According to the analyst, most Bitcoin (BTC) purchases are made for investment and speculative purposes rather than holding coins as a medium of exchange.

“Only a few large additional purchases or exits from the market can have a significant impact on the supply-demand balance,” Laboure said. “[Bitcoin] is too volatile to be a reliable store of value today. And I expect it to remain ultra-volatile for the foreseeable future. “

Although the Deutsche Bank analyst worried about the lack of regulation on cryptocurrencies as well as their potential impact on the environment, she hinted that Bitcoin would likely remain the dominant digital asset in the crypto space. . Ethereum may have more use cases in decentralized finance and with the rise of non-fungible tokens, but Bitcoin is still enjoying its “first-come advantage”.

“If Bitcoin is sometimes referred to as ‘digital gold’, then Ethereum would be ‘digital money’.

Related: Bitcoin ‘sidelines’ gold as a store of value

Deutsche Bank analysts have previously described Bitcoin as a cryptocurrency “too important to ignore, suggesting that the price of the crypto asset would likely increase with the entry into the market of asset managers and additional businesses.In 2019, the financial institution predicted that digital currencies would replace fiat by 2030.