An analyst at the research division of the Deutsche Bank, Marion Laboure, stated recently that Bitcoin does have the potential to take up the role of digital gold. What’s more, she believes that it could be used in such a way for centuries to come, and it will be mostly not controlled by the governments.
While the confirmation is simply repeating the words that have been echoing throughout the industry for years now, it is still a major thing for crypto, especially when coming from an analyst from such a respected bank.
There are still risks to buying Bitcoin
However, alongside the good news, Laboure also had a warning for anyone planning to invest in this coin, stating that the end to its volatility is not in sight. The reason behind it is the fact that most Bitcoin purchases are made for investments and speculation, rather than to use it as a medium of exchange.
As long as people continue to buy and sell to make a profit, Bitcoin will keep its volatility, simply because the supply-demand equilibrium is getting so heavily impacted by this kind of behavior. That makes it too volatile to be a store of value today, and Laboure believes that this is only going to increase, making Bitcoin ultra-volatile in the foreseeable future.
The analyst also said that she find the lack of regulation very concerning, alongside the crypto industry’s potential impact on the environment. However, even with these issues, she doesn’t see a scenario where Bitcoin will lose its dominant position in the crypto industry.
Ethereum does have more use cases, it provides access to decentralized finance, and the rise of non-fungible tokens is certainly massive, but Bitcoin has the first-mover advantage, and it will not lose it anytime soon.