The bank’s analysts told clients that the first cryptocurrency is becoming seen as a better inflation hedge than gold.
JPMorgan says big institutional investors such as banks and hedge funds are starting to see Bitcoin as a better and better tool for fighting inflation.
"Institutional investors appear to be returning to Bitcoin perhaps seeing it as a better inflation hedge than gold.”
The bank gave three reasons for this.
First, it pointed to recent comments by Federal Reserve Chairman Jerome Powell and SEC Chairman Gary Gensler “that there is no intention to follow China's steps towards banning the usage or mining of cryptocurrencies."
Then it pointed to the “recent rise of the Lightning Network and layer-two payments solutions helped by El Salvador's Bitcoin adoption."
Then it wrapped up with the big one, saying:
"The re-emergence of inflation concerns among investors has renewed interest in the usage of Bitcoin as an inflation hedge."
“It’s got no intrinsic value, and regulators are going to regulate the hell out of it… If people are using it for tax avoidance and sex trafficking and ransomware, it’s going to be regulated, whether you like it or not.”