Bitcoin attracts gold. In a note to investors, JPMorgan said Bitcoin, a leading U.S. investment banking firm, appears to be a better defender against inflation than gold. Bitcoin supporters have long sought to ensure that cryptocurrency guarantees better and faster returns than gold and many prefer it as a value store. Both of these aspects are commonly associated with gold. However, critics say that Bitcoin is very volatile and that there is no guarantee that it will always show a growth path.
However, for the third time this year, the price of Bitcoin has crossed $ 50,000 (approximately Rs. 37.56 lakhs). This shows that the impact of bitcoin is rapidly rising and falling, while also making the case that investing in it may ultimately pay off.
“Institutional investors seem to be turning to bitcoin, perhaps seeing it as a better barrier to inflation than gold,” JPMorgan’s note read. Commenting on the company’s monitoring, Fortune magazine said the note “does not come as a surprise” to those who closely follow Bitcoin’s performance this year.
Bitcoin has seen more volatility this year. In February, it crossed the $ 50,000 mark for the first time, then to an all-time low of about $ 64,000 (Rs. 48.08 lakhs) in April. That bull run was curtailed by a major cryptocurrency market crash in May and this year Bitcoin lost all its profits and traded below $ 30,000 (Rs. 22.53 lakhs). It took a while to get out of that slumber and by July it was trading around $ 40,000 (Rs. 30.05 lakhs) again. In August, Bitcoin again surpassed the $ 50,000 mark but lost profits. A month later, it reached the milestone for the third time. Bitcoin traded at $ 54,719 (Rs. 41.11 lakhs) on Saturday afternoon.
JPMorgan believes that this third rally is triggered by the “rebirth of inflationary anxiety among investors” and that they are trying to use bitcoin as a hedge against it.