📝Both Gold And Bitcoin Can Coexist In Central Bank Balance Sheets: Deutsche Bank

Bitcoin’s volatility dropped to historic lows in August, with its 30-day volatility declining to 23% at a time that Bitcoin’s price surpassed a record high above $123,500 on August 15. This combination suggests we may be witnessing the start of a gradual decoupling between Bitcoin’s spot prices and volatility as the crypto’s integration into portfolios is maturing. It could signal a more sustainable trend beyond previous instances of short-term market speculation.

Neither Bitcoin nor gold is likely to replace the US dollar as the primary reserve asset or means of payment.

We believe that Bitcoin adoption will continue, as regulatory developments, macroeconomic conditions and – above all – time should enable the public to increasingly embrace Bitcoin as a store of value.

So long as we are human, Bitcoin and other alternative assets will likely continue to compete for our attention. The history of financial markets suggests that human nature leads to a desire to break away from traditional assets. The US- led adoption of Bitcoin can facilitate a longer-term transition whereby Bitcoin and other cryptocurrencies evolve from a speculative investment into a legitimised, key component of global finance.- Deutsche Bank