When it comes to the relationship of Bitcoin and the banks, it is interesting. This is no wonder, when you consider that BTC was created by Satoshi Nakamoto in response to the banking crisis of 2008/2009 and for the first time payments without an intermediary such as a Bank allows. Considering that the BTC so you could in theory has the Potential to make the business model of banks to undermine Bitcoin as a kind of competitor for many banks, it is important to keep your vision small.
But this resentment seems to have been in the past weeks and months, something changed, particularly in the case of the American Bank JP Morgan. Recently this has been accepted by the two Crypto-exchanges Coinbase and Gemini as a customer. Now, analysts of the Bank go even further and confess Bitcoin in a new Report called “crypto-currencies under its first stress test: Digital Gold, pyrite, or anything in between to pull?” Strength and resistance power. In one aspect, BTC is supposed to be even better than other Assets.
Bitcoin has survived the stress test in March
We remind all of us: it was Thursday the 12. March and Bitcoin crashes along with other Assets in the Wake of the panic in the global markets in-depth. While all asset classes were affected, it hit Bitcoin with a loss of almost 50% within 24 hours at the most.
According to the analysts, Joshua Younger, and Nikolaos Panigirtzoglou of the largest American Bank JP Morgan, was precisely a crucial Moment in BTC history. The turbulence in March of this year, presented according to the two, namely, a stress test for the digital Gold. Now, in retrospect, one can say that the young Asset has passed this Test with a “mainly positive” results.
But that’s not enough. The two analysts acknowledge in their Report that the Bitcoin is here to stay, by saying, the positive stress test show the “longevity as an asset class”. Nevertheless, the BTC as an Asset will, as before, more to speculation, than as a transaction medium, or as the value of memory used.
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More words of praise for BTC
More words of praise and receives Bitcoin from the JPM analysts, the fact that BTC has fallen according to their analysis, in spite of the massive price slide in March only temporarily dropped below its intrinsic value (mining cost per BTC). The following graphic, the Chart is most of the time, the value of 1 shows.
The market structure of Bitcoin, according to JP Morgan even more resilient than that of other Assets, such as currencies, stocks, government bonds and Gold. To measure this, looked at each other, the analysts, the liquidity, or more precisely to say the bid-offer Spread. If the order book is emptying, can cause individual transactions larger price jumps than usual. Although Bitcoin has had one of the strongest declines in liquidity seen at the peak of the crisis, recovered BTC of it much faster than other asset classes.
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