If bitcoin continues with its current pace, we will likely see a mouth-gapping $100,000 for just one bitcoin. Unbelievable! The current price is graceful to watch, the future looks even brighter. Despite some notable names joining the bitcoin and cryptocurrency evangelism, a greater percentage of the world outside the crypto space is yet to grasp the idea behind bitcoin, cryptocurrency and blockchain technology. When this huge population finds their way into cryptocurrency, things are poised to go parabolic.
Exciting times ahead!, the present is already a joy to watch. But someone thinks your bitcoin should worth at most, half its current price.
In its latest report, JP Morgan shared reasonable insights on bitcoin and blockchain as well as its stance on the ravaging technology and fintech solution. Diving into the bitcoin and gold debate, it reiterated on the fact that the contemporary world has shown a preference for digital gold (bitcoin) over traditional gold. However, it believes the digital gold is overly priced:
In fact, an argument can be made that the $25k price that equalizes Bitcoin with gold in risk capital terms could be considered as an upper bound of its fair value range as this price already frontloads (at current levels of volatility) any long-term upside for Bitcoin stemming from real money institutional adoptionContinue reading
$25k? A gold bar worth about $57,000. But, a logically preferred and scarcer alternative should worth less than half. Not to combat the views of one of the worlds most renowned economists, but the basis of this assertion remains unclear. The reign of the lustrous metal has been as old as civilization itself, over the years it has served the purpose of an ornament and a medium of exchange as well. Probably why the JP Morgan economists thinks it deserves to the valued double times more than bitcoin.
The bitcoin vs gold argument has never been a fair one, no one is expecting this to change any time soon. But, comparing a technological revolution with a luxurious metal which is almost as old as man himself will go down as one of the dumbest comparisons of our contemporary time and an exercise which will go on for a long time without any tangible yield.
Bitcoin (and most other cryptocurrencies) represents an offset in contemporary financial and administrational technology developed by individuals who seek to change the way things are done in the financial sector, administrational sector and a host of other sectors applicable to life. Blockchain technology which powers cryptocurrencies presents a distributed ledger system with an enhanced level of transparency which hopes to decentralize some decision-making process, shift the power to the majority and as well enhance productivity in any area where they are applied.
Bitcoin has shown more versatility and understandable use cases than gold. Well, you can’t make an unreasonably expensive ornament from it though. That apart, the global hype on gold accounts for its outrageous prestige and value, something I believe should only be peculiar to the past generations.
In a generation where productivity and utility are rated above royalty and underserved prestige, bitcoin should be valued over gold, and considering the limited supply and an ever decreasing circulation, this difference should be in multiples. Its actually unsurprising that JP Morgan would rate gold over bitcoin in terms of value, judging from the fact that it remains one of the oldest economic institution of our modern time. Bitcoin’s relevance is however, not to be compared to gold. In our present world, bitcoin represents a deviation from the old ways and a statement by the present and also one for the future.
As a matter of fact, a bar of gold at $57,000 is somewhat overpriced, $10,000 is a fair price in my opinion, lol. Very fair to be frank, the only way to justify bitcoin’s $25,000 ‘fair price’.
It is impossible to compare a gold bar with a Bitcoin... it is two completely different things, with different purposes (at least initially). Of course, you can try to compare a pizza and a football, but they are different and have different purposes. So, you might speak of quality, quantity, and so much more - but I don't think these prices should be related to one another in any way, really!
Sure, I think so too. But bitcoin as a store of value leaves gold as its biggest rival.
I take it as $150K USD I have detailed my reasons almost 2 months ago when BTC just reached at 22K and you can read my detailed analysis and post here:
https://leofinance.io/@r1s2g3/from-20k-to-22k-in-matter-of-hours-but-where-is-limit
Posted Using LeoFinance Beta
cool write up. Well, for me, I'll let the market decide.
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Hi dear @joelagbo
With satoshis you can buy goods and services with gold no, you would have to sell that gold to be able to buy any good or service
The problem of analysts like JP Morgan is that they analyze the world from their perspective from their first world country, they do not want to understand that cryptocurrencies solved the problem of many people of not having access to bank accounts, it is many places in Asia people They use wallets and from there they do all their operations totally ignoring the FIAT and the banks.
greeetings
Gold was designed to be an ornament. How it even got into the debate with bitcoin is even a surprise.
I believe on Bitcoin and looking at the current market scenario I can say that Bitcoin is a new form of digital gold and price whatever we have these days is just the beginning because looking at the adoption and attention it is highly expected that it will cross 100k USD by 2022 . maybe you don't believe me as of now but Bitcoin has proved many times whatever people did not believe has happened for sure. keep on accumulating as much as you can because the future is bright and after couple of years will be so happy with your decision now.
I'll let the market decide. It's a free market and when someone finally feels bitcoin is worth buying at $100,000, we will see bitcoin at that price.
Nothing less can be expected from the enemy, traditional economists will never accept that cryptography is a new step towards economic independence of the people by not being centralized and managed by a few.
Well, they've got some valid reasons, to be fair. But whatever these reasons are, cryptocurrencies will prevail.
Hello @joelagbo.
Actually an excellent content that you share with us on this occasion, in recent months we have witnessed the impressive rise in the value of BTC and as you very well express:
We are all in expectation with such a top value that BTC will reach and with that we will also be on the lookout with the base value of BTC, I actually really enjoyed reading your great article, thanks for sharing.
One of the things we must keep in mind is that Mr. JP Morgan has insider information about the markets and the global economy not to mention the amount of advisors he must have to form his opinion from my point of view, he is very right and although I love blockchain technology, being a fan of BTC is not something I want to be, historically gold retains its value and is harder to steal advantages that BTC will never overcome,on the other hand BTC is the forerunner of an industry that for now has no clear future for institutional investors.