Analysts at JP Morgan have said that Bitcoin’s price could potentially fall below $1,260. They also think that banks won’t be able to benefit from blockchain-based technology for at least three to five more years.
Bitcoin Price to $1,260
According to analyst from JP Morgan, the value of cryptocurrencies is yet to be proven.
The report suggests that crypto assets, in general, would only make sense in an economic environment where investors have already lost all their faith in the dollar, gold, and in other major reserve assets.
However, even in these cases, the analysts say that there are less-complicated instruments for transacting:
Even in extreme scenarios such as a recession or financial crises, there are more liquid and less-complicated instruments for transacting, investing and hedging.
They also make the case that pension funds, as well as asset managers, have stayed clear for the most part, regardless of the emerging of certain market infrastructure.
Bitcoin is trading at $3,600 at the time of this writing. However, the analysts have suggested that these numbers are likely to fall to $2,400 and further down to $1,260, provided the “bear market persists”.
Blockchain Won’t Make a Difference Soon
Another point the analysts have made is that blockchain technology won’t make any real difference to banks, at least not in the next three to five years.
Now, it’s questionable why they’ve chosen to refrain from including JP Morgan’s own blockchain-based project Quorum in his comments.
Quorum is a blockchain solution in development by JP Morgan. It’s intended to deliver an enterprise-ready distributed ledger and smart contract platform.
In fact, the official website of the project reads:
Quorum is ideal for any application requiring high speed and high throughput processing of private transactions within a permission group of known participants. Quorum addresses specific challenges to blockchain technology adoption within the financial industry, and beyond.
It seems like JP Morgan itself does seem to believe that blockchain will, indeed, make a difference.
Do you agree with this analyst’s predictions? Share your thoughts down below!
Images credit to Pixabay.
Article Updated: 25/01/2019 13:01