JPMorgan Says What the Main Problem of Bitcoin is
JPMorgan analysts have said in a note that Bitcoin is a volatile instrument, and this factor hinders the mass adoption of the cryptocurrency. Institutional investors will not invest in Bitcoin as long as the crypto shows a wide range of price fluctuations.
Over the past few years, the asset has skyrocketed and fallen in value. Moreover, each new phase of volatility was accompanied by large shocks in the market, which inspires fear in financial companies.
Ethereum (ETH), the largest altcoin, is also facing a similar problem. Digital currencies at this stage cannot compete with gold, which still retains its status as the main safe-haven asset.
Unlike BTC, Ethereum is based on blockchain, which is used by developers to deploy decentralized applications (DApps). Ethereum still leads the networks in terms of the number of launched services, but its market share is gradually decreasing.
In early January, JPMorgan published a report predicting the inevitable weakening of Ethereum’s position in the DeFi decentralized finance market.
