JPMorgan Predicts $600 Billion Bitcoin Demand

JPMorgan Chase, one of the world’s largest investment banks, mentioned in a research note that the recent Bitcoin adoption by mutual life insurance company, MassMutual indicates the potential for additional institutional demand. The bank predicted demand of around $600 billion for Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term in the future.

According to the official note, JPMorgan outlined that if family offices, insurance companies and pension funds decide to allocate a small percentage to Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, it would result in massive demand. The research note drafted by strategists including Nikolaos Panigirtzoglou mentioned that insurers and pension funds are facing regulatory hurdles to enter the crypto market.

“MassMutual’s Bitcoin purchases represent another milestone in the Bitcoin adoption by institutional investors. One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example,” the note states.

The bank expects financial services companies from the US, EU, Japan and the UK to allocate at least 1% of assets in Bitcoin, with an expected Bitcoin demand of $0.6 trillion.

Bitcoin and Gold

Panigirtzoglou said that despite a skewed near term outlook of bitcoin, the long-term picture looks positive. He added that BTC is expected to take advantage of massive outflows from Gold ETFs. “The bitcoin flow outlook for the medium to longer-term looks positive as we anticipate that the contrasting institutional flow picture over the previous two months with inflows into the Grayscale Bitcoin Trust and outflows from Gold ETFs would become a structural trend. The adoption of bitcoin by institutional investors has only begun,” Panigirtzoglou added.

In 2017, the CEO of JPMorgan, Jamie Dimon called Bitcoin a fraud and warned to fire JPMorgan traders involved in Bitcoin trading. “I would fire BTC traders in a second, for two reasons: It is against our rules and they are stupid, and both are dangerous.”

It seems that the bank has changed its tone completely on cryptocurrencies.