While the market has been suffering amidst China’s crackdown, an analyst from Deutsche Bank says she is confident that Bitcoin is here to stay despite ups and downs.
Marion Laboure, an analyst at Deutsche Bank recently compared Bitcoin to Gold and said that the leading decentralized asset is the digital gold of the future. She was also confident that Bitcoin will stay as an alternative currency for the foreseeable future as it cannot be effectively controlled by any government or centralized authority.
Laboure also noted that currently, the significant majority of Bitcoin investments come from investors who want to make money from value appreciation – it is not used as a medium of exchange but as an investment.
“Just a few additional large purchases or market exits can significantly impact the supply-demand equilibrium,” explained Laboure. “[Bitcoin] is too volatile to be a reliable store of value today. And I expect it to remain ultra-volatile in the foreseeable future.
The Deutsche Bank analyst also pointed out the uncertainties in terms of regulations related to the use of cryptocurrencies. She also commented on Ethereum and said that both Bitcoin and Ethereum are there for the long haul. Deutsche Bank has been actively pro-crypto.
Laboure’s statements are significant especially as they come at a time when the market is struggling and China is all out against cryptocurrencies. China has declared the use of cryptocurrencies illegal.