NEW YORK: Bitcoin touched a market capitalisation of US$1 trillion as it hit yet another record high on Friday , countering analyst warnings that it is an"economic side show" and a poor hedge against a fall in stock prices.
"There will likely be some big fluctuations along the way, but I'm still very bullish and I believe the uptrend will continue for the time being," he added. Bitcoin is an"economic side show," it added, calling innovation in financial technology and the growth of digital platforms into credit and payments"the real financial transformational story of the COVID-19 era."Other investors this week said bitcoin's volatility presents a hurdle for it to become a widespread means of payment.
Yet bitcoin would need to rise to US$146,000 in the long-term for its market cap to equal the total private-sector investment in gold via exchange-traded funds or bars and coins, according to JP Morgan.