Bitcoin is robbing gold of its allure. In a letter to investors, JP Morgan, the world's largest investment bank, stated that Bitcoin appears to be a stronger inflation hedge than gold. Many individuals favor bitcoin as a store of wealth, and bitcoin advocates have long claimed that cryptocurrency offers greater and faster returns than gold. Both of these characteristics are commonly linked with gold. Critics, on the other hand, claim that Bitcoin is very volatile and that there is no assurance that it will continue to increase.
Despite this, the price of Bitcoin has crossed $50,000 for the third time this year. While this demonstrates Bitcoin's proclivity for rapid rises and falls, it also suggests that investing in it might pay off in the long run. JP Morgan's letter allegedly stated, "Institutional investors appear to be returning to Bitcoin, maybe perceiving it as a stronger inflation hedge than gold." Fortune magazine commented on the company's remark, saying that it "comes as no surprise" to those who have been watching Bitcoin's success this year. This year has seen a lot of volatility in Bitcoin.
It initially crossed the $50,000 barrier in February, then soared to an all-time high of about $64,000 in April. The Bull Run was cut short in May by a huge cryptocurrency market meltdown, and Bitcoin has now lost all of its gains, selling for less than $30,000. It took some time for it to awaken from its slumber, but by July, it was trading at $40,000 once more. Bitcoin again broke beyond the $50,000 barrier in August, but the gains were erased.
It reached the milestone for the third time a month later. Saturday afternoon, Bitcoin was trading at $54,719 USD. JP Morgan believes that "the re-emergence of inflation fears among investors" is fueling the third surge, and they are attempting to utilize Bitcoin as a hedge against it.