Bitcoin could join gold as a reliable, long-term way to store wealth as the cryptocurrency gains users and value in a craze which JP Morgan’s analysts believe may turn into something resembling a more traditional asset class.
The digital currency now trades at more than $11,000 and both Cboe Global Markets and the CME Group plan to start offering bitcoin futures this month.
This move to join more formal financial markets “has the potential to elevate cryptocurrencies to an emerging asset class,” according to JP Morgan analyst Nikolaos Panigirtzoglou.
The stance is particularly surprising because JP Morgan’s chief executive and chairman Jamie Dimon has long been a high profile critic of bitcoin. Earlier this week, JP Morgan analyst Nikolaos Panigirtzoglou, publicly stated that bitcoin has the potential to become an emerging asset class, given that CBOE and CME, two of the world’s largest options exchanges, will list bitcoin futures by mid-December.
“The prospective launch of bitcoin futures contracts by established exchanges, in particular, has the potential to add legitimacy and thus increase the appeal of the cryptocurrency market to both retail and institutional investors,” said Panigirtzoglou. He further emphasized that as the acceptance of bitcoin as a store of value continues to increase, the market valuation and price of bitcoin will likely increase proportionally. Bitcoin Futures Exchanges Will Lead Investors in Finance Market to Bitcoin
This week, several highly respected analysts including Satoshi Citadel Industries (SCI) co-founder Miguel Cuneta explained that bitcoin is only starting to transform the finance sector, and the price of bitcoin, which is currently at around $11,500, will increase exponentially in the upcoming years.
“Over one-third of a trillion dollars. That’s the total amount of cryptocurrencies in the world. $165 Billion belongs to Bitcoin alone, which just shows how dominant network effects can be. Because of Bitcoin technology, the power to create money was granted to every human being on earth and taken away from kings, oligarchs, and governments,” said Cuneta.