JPMorgan Strategists Believe Bitcoin Volatility Might Stunt Institutional Adoption Growth

Bitcoin is the most successful cryptocurrency in the Blockchain space. Since its inception about ten years ago, it has continued to thrive beyond every reasonable doubt to attain a critical success level. The cryptocurrency continues to be the one with the largest market capitalization, amidst the flocking of individual and corporate investors into the space.

However, like every other cryptocurrency, Bitcoin is not one without its issues. From frequent price volatility to its high energy consumption of miners, the list goes. The price volatility has led business strategists from one of the world’s leading financial institutions- JP Morgan, to predict that the recent institutional investment in the cryptocurrency will not last long.

The Volatile nature of Bitcoin is a deterrent

The business strategist’s argument has fallen on the business risks involved in investing in the cryptocurrency, which has become a source of value to many individuals. According to the business strategist research, they believe that Elon Musk, Micheal Saylor, Jack Dorsey, and Co. committing to Bitcoin will only further create more awareness for Bitcoin and will likely not be the push that will drive other business giants towards the cryptocurrency.

A few days ago, Elon Musk’s company had joined the growing list of institutional investors in Bitcoin by committing about $1.5 billion of their treasury in the digital asset, a move which has been earmarked to be followed by others. However, a few people do not seem to agree as they believe that the risky nature of the cryptocurrency is one that many great companies would not want to gamble investors funds upon.

The volatile nature of cryptocurrencies has always been a source of debate around the cryptocurrency space. Many business strategists and investors believe that the volatility of assets like Bitcoin means that investors could earn a lot at a glance or, unfortunately, lose it all at once. Investments in Bitcoin cannot be termed as either a low-risk investment or a medium-risk investment, as it is a high-risk investment that can come with instant rewards or rapid losses.

Crypto analysts think otherwise

The iota of truth in the new research by the Business Strategist of JP Morgan cannot be underestimated. However, a few crypto analysts have disagreed with the investments guru’s stance, as they believe that most of the growth of Bitcoin is tied to institutional adoption and investment.

Popular Bitcoin Investor Micheal Saylor, whose company has almost the same investment as Tesla in Bitcoin, took his time to organize a seminar for large corporations educating them on the importance of investing their treasury in Bitcoin.

The seminar was well attended by more than 7,000 firms, which signified that despite the unstable nature of the assets, it could still draw interest from many corporations. A claim that tentatively invalidates the business strategist’s opinion who believe the volatile nature of the cryptocurrency might hamper institutional adoption in Bitcoin.

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