JPMorgan: “Bitcoin is a better inflation hedge than gold”

   2021-10-09 10:10

The big bank, JP Morgan said in a note, that institutional investors are favoring Bitcoin over gold. As a hedge against inflation.

Specifically, JP Morgan analysts have shared that they believe that increased appetite from institutional investors has been driving Bitcoin’s rally.



Institutional investors seem to be coming back to Bitcoin. Perhaps seeing it as a better protection against inflation than gold.

They also added: “The resurgence of concern about inflation among investors has renewed interest in using Bitcoin as an inflation hedge.”

JPMorgan: “Money flows from gold to Bitcoin”

Now, institutional investors use Bitcoin as a store of value.

In particular, according to a note from investment bank JPMorgan to clients, the recent rise in the price of Bitcoin (BTC) is due to institutional investors liquidating their investments in gold. To invest it in said cryptocurrency, looking for a hedge against inflation.

According to Nikolaos Panigirtzoglou, strategist at JPMorgan: “There are tentative signs that the previous rotation from gold to Bitcoin seen during most of the fourth quarter of 2020 and early 2021 has started to resurface in recent weeks.”

In this regard, Michael Saylor said: “The implicit endorsement of Bitcoin by banks and major regulators is going to accelerate the collapse of gold. And the rise of Bitcoin as the safe store of value of choice for both institutional and retail investors. ‘

They contribute other factors to the current rally

By the way, JPMorgan indicated other factors that could be behind Bitcoin’s current rally.

The recent rise of the Lightning Network. And second-tier payment solutions aided by El Salvador’s adoption of Bitcoin have also helped increase trust in the Bitcoin network and its ability to scale. Recent assurances from US policy makers that there is no intention to follow in the footsteps of China. In the prohibition of the use or mining of cryptocurrencies.JPMorgan selected as the Best Bank in the World

As relevant data, Global Finance selected JPMorgan as the Best Bank in the World for its performance, reputation and excellence in management. In addition, leadership in digital transformation and corporate citizenship.

“Honored for being recognized as Best Global Bank, Best Investment Bank and Best Private Bank.”

In closing, are regulation and adoption going global? Leave your opinion in the comment box.

I say goodbye with this phrase from Félix Lope de Vega: «What counts is not tomorrow, but today. Today we are here, tomorrow perhaps, we will have left.

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