Marion Labour, an analyst in the research arm of Deutsche Bank, said she could imagine Bitcoin taking on the role of digital gold in the future: it would be around for centuries and largely uncontrolled by the state.

In an update to Deutsche Bank’s “What’s Next” website for Germany’s largest banking institution, Laporte said it “is likely to see Bitcoin become the digital gold of the 21st century,” but cautioned investors about the volatility of the cryptocurrency. According to the analyst, most Bitcoin (BTC) purchases are made for investment and speculation, not for storing coins as a medium of exchange.

“Just a few additional big buys or exits from the market can significantly affect the balance between supply and demand,” Labor said. “[Bitcoin] is too volatile to be relied upon today. I expect it to remain extremely volatile for the foreseeable future.”

While a Deutsche Bank analyst has expressed concern about the lack of regulation of cryptocurrencies as well as its potential environmental impact, it has suggested that bitcoin is likely to remain the dominant digital asset in the crypto space. Ethereum may have many uses in decentralized finance and with the increase in non-native tokens, but bitcoin still has a “first mover advantage.”

“If Bitcoin is sometimes called digital gold, then Ethereum is digital silver.”
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Analysts at Deutsche Bank previously described bitcoin as a cryptocurrency “too important to ignore,” indicating that the price of cryptocurrencies is likely to rise as more property managers and companies enter the market. In 2019, a financial institution predicted that digital currencies would It will replace paper currency by 2030.

Source: CoinTelegraph