According to JP Morgan, Bitcoin has a bright future ahead

The Bitcoin community is pleased: The U.S. bank JPMorgan Chase recently announced how they assess the future prospects of Bitcoin (BTC). According to it the Bitcoin has better chances than gold of becoming an alternative currency in the future. This is apparently confirmed by the generally good exchange rate trend of the king of crypto currencies.
Bitcoin is the gold of the millennials

JPMorgan cited the millennials as the reason for this forecast. These are open to crypto currencies and thus also to Bitcoin. The older generations are more conservative and continue to prefer gold as a store of value, it was said. However, compared to the older generations, the Millennials are not yet significant enough economically, which also affects the importance of Bitcoin.
Crypto currencies are still newcomers

JPMorgan estimated the total value of the gold market to be approximately $2.5 trillion. If one compares this with the total market capitalization of the crypto market, which amounted to a full $341 billion on 29.10.2020, the size ratio becomes apparent. The gold market is currently about 7.3 times larger than the entire crypto market, which also often fluctuates considerably. In order to reach gold, the capitalization of the crypto market would have to increase tremendously. JPMorgan explained:

So that Bitcoin is applicable on a long-term basis at all as alternative for gold, a doubling or a tripling of the course would be necessary.

Nevertheless it is considerable, what Bitcoin reached in short time. Gold is in demand for thousands of years as value memory and means of payment. Bitcoin gives it only is somewhat more than ten years. Nevertheless the crypto currency succeeded in this short time to bring itself at least as second standard beside gold into the discussion and to reach a market capitalization, which corresponds to more than 11 per cent of the capitalization of the gold market.

Bitcoin as means of payment

In its statement, JPMorgan adds that the reasons for holding Bitcoin may also change. For example, Bitcoin would not necessarily have to be used only as a value store. The bank pointed out that the value of crypto-currencies also lies in the fact that they can be used as a means of payment.
Long-term prospects

JPMorgan further stated that it sees significant long-term benefits for Bitcoin. Bitcoin is a stronger competitor for gold than is generally believed. Over time, the Millennials would become bigger and more important players in the financial sector. With them would come crypto currencies and Bitcoin.