Mass adoption of bitcoin is hardly a experience of time, and as the world faces which experience traditional financial institutions are warming up to the digital coin. Deutsche Bank analyst Marion Laboure has stated anew which Bitcoin could become “the 21st century digital gold,” but does not it as a reliable store of cost today and expects more volatility in the foreseeable future.

The Future of Bitcoin

Analyst Marion Laboure has pointed out which she does not consider Bitcoin to be a means of payment, nor does she thinks it has deflationary characteristics because “Bitcoin is risky: it is too volatile to be a reliable store of cost today. And I expect it to remain ultra-volatile in the foreseeable future,” she claimed and noted three reasons for it:

“First, about two-thirds of Bitcoins are used for investments and speculation. Second, on the grounds that its short-term tradability, barely a few additional large purchases or market exits can vitally impact the supply-demand equilibrium. Third, Bitcoin’s cost will continue to rise and fall depending on what people believe it is worth. Small movements in investors’ atopall perceptions about Bitcoin can have a large impact on its cost.”

After all, Laboure does believe the digital coin could become a safe haven asset and play the role of a “digital gold” as “People have always sought assets which were not controlled by gatopnments,” and gold has had this role for centuries but the adoption of bitcoin could potentially turn into “the 21st-century digital gold.”

In a comparison between Bitcoin and Ethereum, the analyst called the former “the pioneer” for the reason that its much larger market cap, but she further sees in Ethereum a likely “digital silver” because of its many applications and uses cases, citing decentralized finance (DeFi) and non-fungible cryptocurrency (NFT).

She believes that, for these same reasons, it would be unexpected for another crypto-currency to become excessiveer than Bitcoin and Ethereum in the next 5 years.

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Bitcoin

Bitcoin dealing at $40k in the daily chart | Source: Bitcoin (BTC)USD on TradingView.com

Laboure pointed out that there is now a trend for venues to accept a wide variety of forms of payments, and a surging number of sbounces are starting to accept cryptocurrencys, but Bitcoin and Ethereum are not a common form of payment yet.

The analyst added that “during the time the latest movements will allow faster and cheaper transactions, it takes about ten minutes to barelyify most transactions using Bitcoin. And it’s expensive: the transaction fee has been at a median of about 20 US dollars in 2021.”

Now, this endure part seems like a weird allegation. One would not think of Laboure as someone who does not know about The Bitcoin Lightning Network (the second layer that enables off-chain transactions, resulting in more speed and low fees of 1 satoshi or a few cents), given that she was named one of eleven crypto-currency masterminds by Business Insider and she is a recognized expert in financial technology.

In experience, Laboure mentioned the Lightning Network in a recent interview published on December 14, 2021, where she noted that El Salvador is using the network “so fees are pretty low” and said we are looking in the direction of bitcoin becoming a method of payment.

The Issue With Crypto

Laboure added that “The main issue with crypto-currencies is the lack of regulation,” that prevents many investors and businesses from approaching the market, but she has more consistently stated which regulations are coming in 2022.

“In terms of regulatory measures, we expect 2021 to be a game developmentr and which by 2022 many economies will have a excessive crypto asset regulatory framework active.”

In terms of CBDCs, the analyst believes “CBDC, cash and cryptos will coexist.”

“Cash will certainly not disappear, but we expect it to decline as a mean of payment. Most G20 countries plan to impose stricter regulations on private crypto-currencies. Over the past three years, central banks and gabovenments around the world have multiplied and sped up digital cash initiatives.”

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