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A senior analyst at Deutsche Bank recently emphasized that Bitcoin’s high market capitalization makes it “too important to ignore.”
The bank employee described BTC as the “gold of the 21st century.”
Bitcoin is the digital gold of the 21st century
On Tuesday, a Deutsche Bank employee made a big statement when he claimed that Bitcoin (BTC) could become the “gold of the 21st century.” Marion Laboure, senior economist and market strategist in the bank’s research department, said that the digital currency’s market capitalization of over $1 trillion now makes it “too important to ignore.”
The analyst, who works at Germany’s largest bank by balance sheet total, pointed out that BTC’s fixed supply and decentralized nature make it a digital alternative to the precious metal. Furthermore, its deflationary properties reinforce scarcity, particularly the fixed cap of 21 million coins. Currently, 89% of the supply is already in market circulation.
The strong statement from a key figure in one of the world’s oldest financial centers solidifies Bitcoin’s status and appeal to institutional players.
BTC is not suitable as a means of payment for regular transactions
Laboure predicted that digital currencies would shape the future of payments. However, she emphasized that despite its potential transformation into the digital gold of the era, Bitcoin remains a risky store of value due to its volatility. Therefore, it is not suitable for use as a means of payment. Furthermore, it is not recognized as legal tender by governments, except in El Salvador.
Laboure also pointed out that the average time for validating transactions on Bitcoin’s base blockchain protocol is 10 minutes. Added to this is the high transaction fee, which averages $20. This makes it impractical for regular transactions or payments.
Bitcoin remains “extremely volatile”
The analyst warned that while gold has fluctuated in the past, Bitcoin is more volatile than the precious metal. Laboure expects BTC to remain “extremely volatile” for the foreseeable future.
Laboure bases her forecast primarily on Bitcoin’s current utility. She estimates that two-thirds of users use it solely for investment and speculation.
The Deutsche Bank strategist then pointed out that BTC’s limited tradability has a profound impact on supply and demand dynamics. Large purchases or market exits by whales often lead to sharp fluctuations in crypto asset prices.
Furthermore, Bitcoin has proven highly sensitive to sudden changes in market perception. In most cases, crucial shifts in sentiment often lead to significant price differences.
Image by Sylvester Böhle from Pixabay
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