JPMorgan Chase sent an investment report to clients this week, pouring cold water on bitcoin and ethereum investors and detailing what the investment bank believes is the biggest challenge BTC and ETH are facing right now.
The bank said the biggest barrier to Bitcoin’s adoption is high volatility; while Ethereum’s dominance in decentralized finance (Defi) is slipping, as alternative public chains like Solana are attracting funds away from Ethereum.
As reported by the block, JPMorgan analyst Nikolaos Panigirtzoglou compared the volatility of gold and bitcoin. He mentioned that data shows that bitcoin’s long-term and short-term volatility cannot be eliminated, because bitcoin’s volatility is gold’s Five times, and regardless of the entire economic cycle, he said it would scare away investors:
This trend and equilibrium in volatility and price distribution makes it impossible to mainstream in the foreseeable future.
The challenge for Ethereum is to face other EVM-compatible public chains competing for TVL. As more and more competitors join in, JPMorgan Chase wrote in the report:
Do not dump the IMF warning, El Salvador’s President Calls Bitcoin Mainstreaming and Surges
On the other hand, Nayib Bukele, President of El Salvador, who was warned by the International Monetary Fund (IMF) a few days ago, expecting him to cancel the “Bitcoin as legal tender” policy, still stands firmly in support of Bitcoin.
He mentioned on Twitter that there are more than 50 million millionaires in the world, and many rich people want bitcoins, so it is not enough to have one per person.
Not enough for half of them (millionaires) and it’s only a matter of time before prices go up.
El Salvador also increased the purchase of 410 bitcoins on the 22nd last week, which attracted the attention of the International Monetary Fund, urging it to abandon the bitcoin legal currency plan to make the country’s financial structure more secure.
There are more than 50 million millionaires in the world.— Nayib Bukele 🇸🇻 (@nayibbukele) January 31, 2022
Imagine when each one of them decides they should own at least ONE #Bitcoin
But there will ever be only 21 million #Bitcoin
No enough for even half of them.
A gigantic price increase is just a matter of time.