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J.P. Morgan’s bullish stance is driven in part by PayPal's recent decision to offer Bitcoin to its customers and Square’s recent move to add $50m of the cryptocurrency to its balance sheet. Another major factor for its position, though, is the demographic trend in which younger generations are choosing Bitcoin over gold.
“The older cohorts prefer gold, while the younger cohorts prefer Bitcoin as an ‘alternative’ currency,” says the research note. The analysts go on to observe that, if this trend continues, there could be a challenge to gold in the long term—with important price implications for Bitcoin. “Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the Bitcoin price from here,” the note states.
