The volatility of Bitcoin is undoubtedly one of the features that make the cryptocurrency stand out from altcoins. An analyst from financial giant Deutsche Bank Marion Laboure agrees with that. The analyst opined that BTC will enjoy a ‘first-mover advantage’ over other cryptos in the near future.
Laboure revealed that she envisions the flagship cryptocurrency assuming the prospect of becoming digital gold soon, lasting for centuries to come and without any form of significant control by the government. The financial analyst made this known on the Bank’s website.
Laboure Warns Against the Coin’s Volatility
While discussing the next move of Deutsche Bank in Germany, Laboure disclosed that she could see the potentials of Bitcoin becoming the 21st-century digital gold. However, she warned investors of the crypto’s volatility and the risks associated with it. She added that most BTC holders tend to make investments with BTC rather than use the coins as a medium of exchange for goods and services.
Laboure said that bitcoin is too unpredictable to be a reliable store of value, adding that it could even become ultra-volatile soon. Although the analyst raised concerns about the lack of a regulatory framework for the crypto industry, she hinted that it would be difficult to replace BTC as the most dominant asset in the crypto world. Ethereum may be more deployable in terms of implementing projects than Bitcoin, thanks to the rise in NFTs, but BTC still has the “first-mover benefit”.
Deutsche Bank once described Bitcoin as a crypto that’s too essential to ignore, adding that its price would continue to rise as more asset managers and companies enter the market. The banking giant in 2019 predicted that cryptocurrencies would substitute flat currencies by 2030. With companies and businesses massively adopting cryptos, the 2030 prediction would likely happen.
Several people have predicted Bitcoin to become the new store of value. Earlier this year, Bloomberg strategist Mike McGlone said that Bitcoin would overtake hold as the haven for investors. He pointed at the various indicators which suggested that BTC was outperforming gold. According to Mike, this could set the stage for institutions and businesses to adopt virtual currencies.
The strategist was one of the few persons that predicted the price of BTC to rise to $50k, due to massive investments in cryptos. BTC did pass the $50k mark in late August but declined following massive supply and El Salvador’s announcement of making bitcoin legal tender.
BTC is currently trading below $43k after losing 5% in the market on Friday following China’s comment on cryptocurrency.