German multinational investment bank Deutsche Bank says more and more people are choosing Bitcoin instead of gold to protect their money.
In a communication from Deutsche Bank published on ZerohedgeAccording to the Frankfurter Bank, investors are increasingly seeing Bitcoin as a legitimate option for storing wealth.
Deutsche Bank research strategist Jim Reid points to Bitcoin’s recent momentum as evidence of evolving investor behavior.
“Bitcoin rose by a further + 3% overnight and seems to be generating its own dynamic. It’s up over 70% in the past six weeks as more investors view it as a credible asset to invest in. “
Reid also notes that Bitcoin could overtake gold as the primary inflation hedge for those looking to protect their liquid capital.
“There also seems to be increasing demand for Bitcoin, where gold was previously used to hedge dollar risk, inflation and other things.”
Overall, gold is up 26.37% while BTC is up 120% year over year.
JP Morgan said in late October that Bitcoin is also seen as a worthy competitor in the battle to replace gold as the best option to hedge against the US dollar. The U.S. investment banking giant believes Bitcoin could be a more popular option, especially among younger generations, and estimates that the price may even triple.
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