Bitcoin has been doing extremely well for the past nine months. The currency really came to fruition during the initial time of the coronavirus pandemic, and it has been on a serious roll ever since, recently striking a new high of roughly $56,000 per unit. However, despite all the glitz and glam the currency has been attaining, financial giant JPMorgan believes that it’s fintech and not bitcoin or crypto that has garnered true recognition during the time of COVID.
JPMorgan: FinTech Has Done More During the Pandemic Than BTC
In a recent report, JPMorgan commented that while bitcoin is doing relatively well for the time being, it doesn’t boast the long-term financial stamina that many people seem to think it has. The company suggests that it will never earn a place as a payment currency, and that it’s still too vulnerable to price swings and volatility to be taken seriously by anyone.
Now, JPMorgan says that the only reason it’s price is skyrocketing is because companies say they are “looking into it.” However, no serious plans to establish bitcoin as a payment method or use it as such have been cemented just yet. The company claims:
Bitcoin prices have continued their meteoric rise with Tesla, BNY Mellon and Mastercard’s announcements of greater acceptance of cryptocurrencies, but fintech innovation and increased demand for digital services are the real COVID-19 story with the rise of online startups and expansion of digital platforms into credit and payments.
JPMorgan suggests that fintech and digital startups have ultimately pushed bitcoin and crypto aside in many ways, and that companies within this space have done a lot more when it comes to ensuring payments can be made swiftly and with ease. It goes on to say:
Competition between banks and fintech is intensifying, with big tech possessing the most potent digital platforms due to their access to customer data. ‘Co-opetition’ between ‘fin’ and ‘tech’ players lies ahead, with banks stepping up investment to narrow the technology gap, and the battle between US banks and non-bank fintech is also playing out on the regulatory front… Traditional banks could emerge as endgame winners in the digital age of banking due to their advantage from deposit franchise, risk management and regulation.
Bitcoin Could Still See Further Spikes
Despite the attacks on crypto, JPMorgan’s own analysts are predicting that bitcoin is likely to continue its present run, and that the asset could hit a price of roughly $146,000 per unit in the coming future and serve as a potential hedge against further economic damage caused by the pandemic.
Sadly, JPMorgan isn’t the only entity that remains unconvinced about bitcoin’s future. Economist Nouriel Roubini states that the asset bears no “intrinsic value,” while a survey conducted by Deutsche Bank has its investors referring to bitcoin as one of the world’s most “extreme bubbles.”