Deutsche Bank | Bitcoin is “too volatile” to be a “reliable” store of value
Deutsche Bank says Bitcoin is “too volatile” to be a “reliable” store of value
According to the bank, Bitcoin payments also still represent a “tiny” fraction of global payments.
Bitcoin’s price fluctuations do not make it a “reliable” store of value, according to new research by financial services giant Deutsche Bank.
In the first part of the three series of reports, “The Future of Payments”, published last week, Deutsche Bank, which has its headquarters in Germany, said that the crypto-currencies have “passed the tipping point necessary to come into fashion” but are still in the “early introduction phase”.
In particular for Bitcoin, the world’s largest crypto currency, the bank said it was “too volatile” to be a “reliable” store of value. It referred to the strong price fluctuations of Bitcoin over the period 2017-2018.
Translated with www.DeepL.com/Translator (free version)
However, if we look at the Euro over its entire time, we see a cq. 50% fluctuation in value. Whereby one must say here that the initial value was higher than the Bitcoin and first of all a depreciation is to be seen. Where in return, the Bitcoin in the average value is constantly rising and the euro itself since 2009 continuously falls. Here, everyone should probably make himself a picture of and according to their own procedures this data to exploit. Because I must also admit that I am a Bitcoin advocate and do not think negatively about the development. But I am also not a financial expert. I see with my eyes only a nice talk, or bad talk of a currency that has not yet fully penetrated everyone.
Overall, the bank believes that crypto currencies have the potential to “revolutionize” payment traffic. “Looking to the future, it may not come as a surprise if a new and common crypto currency unexpectedly appears,” she added.
In the second part of the series, which was also released last week, Deutsche Bank said cash will be around “for decades to come”. The third part – “Digital Currencies: the Ultimate Hard Power Tool” – seems to be dedicated to cryptography and is expected to be published soon.
Just last month, Deutsche Bank said that cryptography has the potential to replace cash in the next decade because the current Fiat system looks “fragile”. It added at the time that crypto must become legal in the eyes of governments and regulators if it is to be widely used.
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