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Here's how bitcoin stacks up to gold as a store of value based on 8 key factors, according to JPMorgan

Here's how bitcoin stacks up to gold as a store of value based on 8 key factors, according to JPMorgan
Bitcoin slumped Wednesday and into Thursday.Jirapong Manustrong/Getty Images

13 years after its creation, bitcoin remains a debated asset class that is often compared to gold.



Bitcoin is not seen as a store of value by all investors given its volatility and short history.



Here's how bitcoin compares to gold as a store of value based on 8 key factors, according to JPMorgan.



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The underlying value of the bitcoin network isn't determined by cash flows or dividends, metrics commonly used to value stocks. Instead, the price of bitcoin is solely determined by supply and demand dynamics driven by its buyers and sellers."Nothing inherently valuable underpins the bitcoin network, similar to many of the world's fiat currencies since leaving the gold standard," JPMorgan explained in a Friday note.But the bank does see bitcoin's technology driving value in its network, mainly its digital scarcity. There will only be 21 million bitcoins in existence once the last one is mined 118 years from now. That digital scarcity sparked a surge in its price since the start of the pandemic as governments around the world significantly increased their debts and money supply.That dynamic has led some investors to look for alternatives to fiat currencies as a store of value, like bitcoin and gold.
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