Deutsche Bank: Bitcoin is becoming increasingly attractive as an alternative store

With the recent rise of Bitcoin and its achievement of great returns, especially for investors who entered last March, Bitcoin has become seen as one of the best investments in 2020, and its opposite performance of many traditional assets and banknotes, topped by the dollar, made it an investment asset that is resistant to inflation.

According to analysts at Deutsche Bank, Bitcoin is becoming increasingly attractive as an alternative store.

Jim Reid, Managing Director and Head of Global Fundamental Credit Strategy at Deutsche Bank, said: "There seems to be a growing demand for the use of bitcoin, which has become like gold as a hedge asset, as gold is used to hedge against the risks of the dollar, inflation and other things."

Proponents have long viewed Bitcoin as digital gold due to the limited supply and predictable use of a store of value opposite to the banking influence.

Bitcoin has gained an estimated 144% return on investment this year, while gold is up only 22%.

In general, both assets seem to have benefited from the inflation-enhancing monetary and fiscal policies launched by central banks and governments around the world to contain the economic fallout caused by the coronavirus.

Gold has risen to its reputation as a haven asset and is down 1% this month, as the emergence of positive news regarding the discovery of the vaccine and its effectiveness makes investors abandon gold and risk again in the financial markets, which negatively affects the performance of gold.

According to Mr. Jim Reid: "The difference between gold and silver on the one hand, and bitcoin on the other, is one of the anomalies for this month."

Earlier this month, the companies "Pfizer" and "Moderna" in the United States of America announced encouraging results for experimental vaccines for the coronavirus, which led to the transfer of funds from gold and other haven assets to risky assets.

He told Reed earlier this month that coronavirus vaccines were equivalent to global financial incentives.

Christian Nolting, chief global investment officer at Deutsche Bank, said: "Inflation could rise moderately in 2021 and 2022, which bodes well for stocks and gold."

At the time of writing this article, Bitcoin is trading at $ 18,600, while Gold is trading at $ 1,867 an ounce.