Here’s how bitcoin could soon be worth $146,000 according to JPMorgan

[Anta Assamey]

 

Bitcoin’s nearly nonstop climb to new records has drawn the attention of Wall Street like few other securities in recent memory. 

The world’s No. 1 digital asset was recently trading at around $32,000 in Tuesday action, at last check, but the team at JPMorgan Chase JPM, 0.66%, make the case that the blockchain-backed cryptocurrency could be valued at $146,000 in the not-so-distant future , if it can continue to draw demand away from gold buyers, as the researchers at the bank think is already happening. 

The analysts point to outflow from gold-pegged exchange traded funds, or ETFs, and inflows into a digital-currency focused trusts sponsored by Grayscale, for example, as part of the evidence pointing to increased use of bitcoin as a gold-like security, which would help to drive its price further into the stratosphere. 

“Bitcoin’s competition with gold has already started in our mind as evidenced by the more than $3 [billion] of inflows into the Grayscale Bitcoin Trust and the more than $7bln of outflows from Gold ETFs since mid-October,”(see attached chart):

 

JPMorgan says that by one measure, bitcoin currently consumes 3.4 times more risk capital than gold and over 5 times more, if comparing the Grayscale Bitcoin Trust versus GBTC, +8.30% the SPDR Gold Shares GLD, 0.37%, the largest gold ETF by asset. 

Bitcoin BTCUSD, 7.74% would currently have to rise by 4.6 time from its current market capitalization of around $575 billion — outstanding coins in circulation multiplied by price per unit — to imply a bitcoin price of $146,000 “to match the total private sector investment in gold via ETFs or bars and coins,” wrote JPMorgan’s strategy team, including, Nikolaos Panigirtzoglou, Mika Inkinen and Nishant Poddar. 

The researchers also said that they expect interest in bitcoin to come largely from younger investors. 

“There is little doubt that this competition with gold as an ‘alternative’ currency will continue over the coming years given that millennials will become over time a more important component of investors’ universe and given their preference for ‘digital gold’ over traditional gold,” the research team wrote in the research reported dated Monday. 

The one major impediment to bitcoin’s price rise and one that is likely to be make its price moves fragile is its volatility. 

 

“But this long term upside based on an equalization of the market cap of bitcoin to that of gold for investment purposes is conditional on the volatility of bitcoin converging to that of gold over the long term,” the researchers write.

Investors have been attracted to the narrative that bitcoin could act as a store of wealth amid rampant central-bank money printing in the past year to bolster an economic recovery from the coronavirus pandemic.

PayPal PYPL, 0.68%  recently allowed users on its platform to purchase bitcoin ,  as well as other sister cryptos like Ethereum’s Ether coins ETHUSD, 7.34%,   Bitcoin Cash BCHUSD, 3.98%   and Litecoin LTCUSD, 4.19%.   Square’s SQ, 2.56%   popular Cash App also allows users to buy and sell bitcoins.

Bitcoins enjoyed a remarkable runup in 2020 compared against other assets. Already bitcoins are up 12% so far in 2021, compared against a 3% gain for gold’s price GC00, 0.30% GOLD, -1.46%, based on the most-active gold futures contract, for in January. Meanwhile, the Dow Jones Industrial Average DJIA, 0.46%, the S&P 500 index SPX, 0.52% and the Nasdaq Composite COMP, 0.67% are all lower at this point in the year.

[joblessjack]

LOL udaa bitcoin lo patakandi bro no real value , Banks wil not let it happen 

[Naaperushiva]

Lol JPMC ...2018 lo veede fraud bokka annadu and didn't let the purchases from the card..ippudu idhi....

this is how they create fomo and fud in the market to cash out the situation

[nokia123]

8 minutes ago, Naaperushiva said:

Lol JPMC ...2018 lo veede fraud bokka annadu and didn't let the purchases from the card..ippudu idhi....

this is how they create fomo and fud in the market to cash out the situation

agreed, 2018 lo crypto is fraud annadu... gap lo full gaa bitcoins konndu ani talk and ee year vaadi own crypto coin launching...saying country to country transaction cheyyocchu without any issues at your convenience ...

 

ayina veedu endhuku bitcoin ni ala lepouthunnadu? dhani valla banks ke ga bokka?

[nokia123]

38 minutes ago, joblessjack said:

LOL udaa bitcoin lo patakandi bro no real value , Banks wil not let it happen 

short term lo it will go up for sure baa...if you dont believe in crypto, buy and sell soon..you can still make money

[Naaperushiva]

Just now, nokia123 said:

agreed, 2018 lo crypto is fraud annadu... gap lo full gaa bitcoins konndu ani talk and ee year vaadi own crypto coin launching...saying country to country transaction cheyyocchu without any issues at your convenience ...

 

ayina veedu endhuku bitcoin ni ala lepouthunnadu? dhani valla banks ke ga bokka?

No once can stop bitcoin baa and they know it....He owns a bunch so to sell them he'll promote it anthey

[Galactus]

Citi says 340k , anyway not selling whatever small amount I have

[zarathustra]

One of my friends brought 25 bitcoins back in 2017, he is planning to retire soon with what it's going to hit. 

We both discussed buying it when it was still less than a 1000, he brought it and I didn't. Made all the difference. 

[k2s]

Already 34k crossed

[ammoru_talli]

JPMC vadu even got patents. They are first in market to have almost five applications on this technology already. 

[nokia123]

2 hours ago, zarathustra said:

One of my friends brought 25 bitcoins back in 2017, he is planning to retire soon with what it's going to hit. 

We both discussed buying it when it was still less than a 1000, he brought it and I didn't. Made all the difference. 

1000 unnappudu mee dosth 25 konnadu ante..rough ga 25k spend chesindu aa time la..he definitely deserves to retire soon as he earned it

question - 2018 la 19k to 3k poyinappudu emi ammale mee dosth? 
 

Na dosthana lo 5-10 coins unna vallu unde..20-30 dollars petti konnaru aa time la..andharu ammesinru loss thattukoleka down ayina time la..may be 1 or 2 paccana pettinru emo thelvadhu 

[zarathustra]

33 minutes ago, nokia123 said:

1000 unnappudu mee dosth 25 konnadu ante..rough ga 25k spend chesindu aa time la..he definitely deserves to retire soon as he earned it

question - 2018 la 19k to 3k poyinappudu emi ammale mee dosth? 
 

Na dosthana lo 5-10 coins unna vallu unde..20-30 dollars petti konnaru aa time la..andharu ammesinru loss thattukoleka down ayina time la..may be 1 or 2 paccana pettinru emo thelvadhu 

no vaadu chala analytical guy, appude cheppadu temporary dip idi long term it will yield great profits. might be my ticket to retirement ani, vaadu oka room dedicate chesadu appatlo vaadi intlo only for bitcoin mining. 

Some people just know when to take the risk ya, vaadi grandmom poyetappudu ichindi vaadiki aa 25k, now he might be a millionaire very soon once he cashes out. 

[AndhraneedSCS]

JPM vadu chala talented 

 

Tesla is worth $90 antadu. NIkola ni push cheyyadaniki inka try chestunnadu 

 

Botcoin lo invest cheste employees will be terminated annaru... now they say it will go to $146K

[Original Profile]

Ee news kosame waiting. Ika time to sell. Veellu hype icchi lepaaru ante bakara cheyyadam guarantee

[nokia123]

2 hours ago, AndhraneedSCS said:

JPM vadu chala talented 

 

Tesla is worth $90 antadu. NIkola ni push cheyyadaniki inka try chestunnadu 

 

Botcoin lo invest cheste employees will be terminated annaru... now they say it will go to $146K

Peddha comment idhi 😀