According to JPMorgan, cryptocurrencies will see widespread adoption in 2022. In addition, the analyst pointed out that Bitcoin is an excellent store of value in the modern world.
Cryptocurrency markets and the industry are set to gain more acceptance from major investors and companies in 2022, JPMorgan equity research analyst Kenneth Worthington wrote in a note to clients Friday, reports CoinDesk. According to the analyst, next year could be “the year of the blockchain bridge (driving greater interoperability of various chains) or the year of financial tokenization.”
In addition, JPMorgan believes that Bitcoin is “particularly well-designed as a modern store of value, and the strong design has contributed to the increased confidence in and value of Bitcoin.” However, it's worth considering that Bitcoin still falls short of other stores of value, including gold, given its limited history, Worthington warns.
The analyst pointed out that the increased volatility of Bitcoin probably won't make it a good currency, as it “could undermine crypto as a medium of exchange, as a unit of account and as a standard for deferred payments, the other recognized functions of money.” Although at the moment, even fears about volatility have not stopped the growth of the value of the cryptocurrency, he stressed.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.