J.P.Morgan Picks Ethereum Over Bitcoin

2021-11-06 01:18:08
Sticking To ETH

The biggest banking entity in the world, J.P.Morgan, publicly backs ethereum and chooses it over bitcoin. According to a recent report issued by the bank, the second-largest digital asset in the world is far better for investments.

Nikolaos Panigirtzoglou, an analyst from J.P.Morgan says ETH is currently the go-to option. Additionally, he states that ethereum is the leading digital asset in the world of DeFi (decentralized) finance. And that is due to several key factors.

For one, J.P.Morgan states that ethereum is the number one used digital asset in the world. Moreover, together with NFTs and stablecoins, ethereum is far more widely-accepted than its crypto counterpart, bitcoin.

Another major issue is the wide usage of the assets. Or the fact that Ethereum-related DeFi projects already surpass a value of a whopping $106 billion dollars. For one that is due to the more affordable price. And as well as the entire plethora of blockchain projects with Ethereum as the core.

Uncertain Future

Moreover, according to Nikolaos Panigirtzoglou, bitcoin has the role of a hedge to prevent inflation. In particular, while the asset thrives in a low-interest ecosystem, it practically is responsible for exposing how unstable that financial system really is.

Consequently, he states that nowadays central banks are not so dedicated to supporting bitcoin like before. And as a result, there is a huge possibility that bitcoin could suffer a very sudden blow. That refers to both bitcoin and gold.

The rise in bond yields and the eventual normalization of monetary policy is putting downward pressure on bitcoin as a form of digital gold. The same way higher real yields have been putting downward pressure on traditional gold.Nikolaos Panigirtzoglou | Analyst at J.P.Morgan

Regardless of whether J.P.Morgan predictions come true, the fact that the bank is pro ethereum and chooses it over bitcoin should tell us something. Especially since the reputation of J.P.Morgan in the banking world is unprecedented.

That is why it never hurts to pay attention to these ‘big dogs’, especially when they talk about money, i.e. crypto.

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