Analysts at JP Morgan have predicted that the price of Bitcoin ( BTC ) could slip to $ 1,260 , and that banks will not get real benefits from blockchain technology for at least three or five years.
The banking services giant has explained that the value of cryptocurrencies has not yet been proven, and that their use can be justified only in the case of a hypothetical " dystopian event ", in which investors totally lose faith in traditional assets such as gold and US dollar .
"Even in extreme scenarios, such as recession or financial crisis, there are more liquid and less complex instruments to complete transactions and investments compared to cryptocurrencies."
JP Morgan also states that the interest of institutions in cryptocurrency markets has declined sharply over the last six months, and that the sector is currently mainly composed of small investors. Moreover, the use of digital coins for payments will remain " complex ", since last year almost no major retailer began to accept cryptocurrencies.
Analysts predict that the price of Bitcoin will fall to $ 2,400, and the decline could even reach $ 1,260 if the current bear market continues. At the time of writing this article, the main cryptocurrency is trading for around $ 3,590 , green by 0.36% compared to yesterday.
Finally, although JP Morgan does not believe that the much-discussed blockchain technology will bring real benefits to banks for at least three or five years, the banking institution admits that distributed registries have enormous potential.