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In a note from Deutsche Bank published on Zerohedge, the Frankfurt-based bank says investors are increasingly seeing Bitcoin as a legitimate store of wealth option.
Deutsche Bank research strategist Jim Reid points to Bitcoin’s recent momentum as evidence of the evolving investor behavior.
“Bitcoin is up another +3% overnight and seems to be creating momentum of its own. It’s up over 70% over the last six weeks as more and more investors are starting to see it emerge as a credible asset to invest in.”
Reid also notes that Bitcoin may be overtaking gold as the number one hedge against inflation for those looking to protect their liquid capital.
“There also seems to be an increasing demand to use Bitcoin where Gold used to be used to hedge Dollar risk, inflation and other things.”
On the whole, gold is up 26.37%, while BTC is up 120% on the year.
JP Morgan said in late-October that it also views Bitcoin as a worthy competitor in the fight to replace gold as the top option to hedge against the US dollar. The US investment banking giant hypothesizes that Bitcoin could be a more popular option, especially amongst younger generations, estimating that it may still triple in price.