Marion Laboure, a research analyst at Deutsche Bank, believes Bitcoin will eventually take on the role of digital gold, lasting for centuries, enjoying a “first-mover advantage” over other cryptocurrencies and entirely uncontrolled by the government.
Laboure claimed she could “possibly see Bitcoin becoming the 21st-century digital gold” in an update to Deutsche Bank’s website on “what’s next” for Germany’s largest financial company, but warned investors about the crypto asset’s volatility.
Most Bitcoin (BTC) purchases, according to the expert, are made for investment and speculation rather than for use as a medium of exchange.
“A few more substantial purchases or market departures can have a significant impact on the supply-demand equilibrium,” Laboure explained. “Today, [Bitcoin] is far too volatile to serve as a reliable store of value. And I believe it will continue to be extremely volatile in the near future.”
Despite her concerns about the absence of regulation surrounding cryptocurrencies and their possible environmental impact, the Deutsche Bank analyst predicted that Bitcoin will remain the top digital asset in the crypto industry.
Although Ethereum has more applications in decentralized finance and with the rise of non-fungible tokens, Bitcoin retains its “first-mover advantage.”
“If Bitcoin is sometimes called ‘digital gold’, Ethereum would then be the ‘digital silver.’”
Bitcoin has already been labelled by Deutsche Bank analysts as a cryptocurrency that is “too important to ignore,” implying that the price of the crypto asset will likely climb as more asset managers and firms enter the market. By 2030, according to the banking institution, digital currencies will have replaced fiat currency.