A high-ranking analyst at Deutsche Bank believes it is likely that cryptocurrencies will replace precious metals as a safe investment in the future. In a post on the official financial institution’s website, Marion Laboure describes Bitcoin as the potential new gold and Ethereum as the potential new silver of the 21st century.
She justifies her analogy with the fact that cryptocurrencies, like precious metals, are not controlled by governments and their value thus develops independently of the inflation of regular money. She points out that historically the value of gold has also been subject to strong fluctuations, so it is not that different from Bitcoin on this point.
The comparison between Bitcoin and gold has been cited several times by advocates of the currency in the recent past. Equating Ethereum with silver, on the other hand, is new. According to Labore, the world’s second-largest cryptocurrency has significantly more practical uses than Bitcoin, which is primarily used as an object of speculation. At around 295 billion euros, the market capitalization is less than half as high.
Replacement of precious metals still a long way offthe precious metals are
Until actually replaced by Bitcoin and Ethereum, it will be some time, according to Labore. The economist currently considers investing in cryptocurrencies to be too risky to function as a safe store of value. This is mainly due to the fact that Bitcoin is still mainly used for speculation and can only be traded to a very limited extent.
As a result, individual transactions by larger investors could have a massive impact on the price. In addition, the image of Bitcoin is mixed and its value is still too strongly linked to how it is perceived by the public. A single negative message, such as Elon Musk’s criticism of eco-balance the currency’s, can cause the value to plummet unpredictably.
According to Labore, the stronger regulation of the crypto market will have a positive effect on Bitcoin & Co. It assumes that most large countries will create solid framework conditions for trading cryptocurrencies in 2022 and that more investors and businesses will enter the market as a result.