The first cryptocurrency is nothing more than an “economic attraction”, and the main result of the COVID-19 pandemic will be the flourishing of fintech. This point of view was presented in a new report by analysts of the financial holding JPMorgan, writes CNBC.
“The real story of COVID-19 is fintech innovation and increased demand for digital services, which pushed digital platforms to add payment and credit services,” the experts said.
Experts expect increased competition between fintech and traditional banks, as the latter increase investments to bridge the technological gap and lobby for restrictions at the legislative level. JPMorgan believes that financial institutions are more likely to win in this fight due to a large deposit base, risk management and regulation.
Experts have noted the unresolved problems of the first cryptocurrency, which may prevent it from becoming a popular asset, despite the impressive rally in recent weeks.
Analysts allowed Bitcoin to rise to $ 146,000 amid competition with gold as insurance against inflation.
They added that the implementation of this prediction depends on the volatility of the first cryptocurrency. Its value should decrease to the indicator of the main precious metal, which may take years. Otherwise, the bitcoin price will remain “volatile”.
JPMorgan has questioned the ability of cryptocurrencies to diversify investment portfolios, calling them a “failing hedge.”
Financial holding analysts have criticized Bitcoin for its volatility before. In their opinion, this serves as an obstacle for corporations to place liquidity reserves in cryptocurrency.
Earlier, JPMorgan expressed its readiness to support the first cryptocurrency trading if there is demand from customers.
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