Deutsche Bank analyst: Bitcoin is “digital gold” and Ethereum “digital silver”
An analyst at Deutsche Bank’s research division, Marion Laboure, has said she can already envision that Bitcoins are taking the role of digital gold in the near future, “lasting for centuries” and “largely not controlled by any central government.”
On the Deutsche Bank’s official website under the “what’s next” section, Laboure has said that she thinks Bitcoins could potentially become the 21st-century digital gold.” However, she has also warned investors against the cryptocurrency asset’s volatility.
According to Laboure, most Bitcoin (BTC) purchases are actually made for investments and speculation rather than using the wallets for any exchange or payments purpose.
She said on the update that a few “additional large purchases” and market exits have the power to significantly impact the supply-demand equilibrium. She admitted that Bitcoins are “too volatile” for a reliable source of value in the present day, and she expects it to remain “ultra-volatile in the foreseeable future.”
The Deutsche Bank analyst has expressed concerns about its decentralized nature as well as its impact on the environment. Still, she affirmed that it is most likely Bitcoins would remain the “the dominant digital asset in the crypto space.” Although Ethereum boasts of most use cases in DeFi but Bitcoin enjoys the “first-mover advantage,” she added.
She said that if Bitcoin is the digital gold, then Ethereum would be the “digital silver.”
Earlier, the largest national bank of Germany had urged Bitcoin is a crypto token that is “too important to ignore,” suggesting that its price would continue to rise with additional asset managers and more crypto companies entering the market.
In 2019, the Deutsche Bank had even predicted that digital currencies would replace fiat by the year 2030.