While the Bitcoin gold debate and comparison that has been going on for years continues, a new report came from JP Morgan.
According to Coindesk, JP Morgan analysts comparing Bitcoin and gold said that BTC is 3.7 times more volatile than gold.
At this point, JPMorgan analysts said in their latest report that if Bitcoin is at the same level as the gold allocation in investor portfolios, its market value should rise to $ 3.3 trillion.
Pointing out that if BTC matches gold and its market value rises to $3.3 trillion, it would mean that its price would more than double, analysts said that the rise would probably not occur due to Bitcoin's risk and increased volatility.
Analysts also said that if Bitcoin matched gold in terms of venture capital, BTC's market cap would drop to $0.9 trillion, implying a price of $45,000.
JP Morgan analysts led by Nikolaos Panigirtzoglou stated the following in the report:
“If Bitcoin were to match gold's allocation in investor portfolios, its market cap would need to rise to $3.3 trillion, meaning its price would more than double, but this likely won't happen due to the risk and increased volatility of the cryptocurrency.
Most investors take risk and volatility into account when allocating across asset classes.
“Given that Bitcoin's volatility is approximately 3.7 times the volatility of gold, it would be unrealistic to expect Bitcoin to match the amount of gold in investors' portfolios.”
*This is not investment advice.