BayernLB, one of Germany’s largest financial institution has taken rigorous look at Bitcoin, concluding that the largest cryptocurrency by market cap, is the money of the 21st century.
The Bavarian bank for the German economy said Bitcoin was conceived to be a harder asset than gold. Otherwise known as Bayerische Landesbank (Bavarian State Bank) with its headquarter in Munchin, BayernLB is among the 6 Landesbanken, a group of state-owned banks in Germany.
In a research work tagged “Megatrend Digitalisation: Is Bitcoin Outshining Gold?” carried out by its research section, the bank dig dip into Bitcoin’s market situation and the upcoming halving, using the stock-to-flow analysis that expands out of the commodity-market analysis, to quantify the “hardness” of Bitcoin in comparison with Silver and gold.
The research noted that a primary issue for the stock-to-flow approach is the upcoming Bitcoin halving, a process that reduces the supply of Bitcoin by 50 percent which is expected to take place in 2020.
The research work emphasized that Bitcoin will show the same level of hardness with Gold when the next halving takes place. However, it posited that come 2024, when another halving will take place, Bitcoin would have increased greatly compared to Gold.
After critical market observation, BayernLB, said to be the 7th largest bank in Germany and one major respected region-owned financial institution, through the stock-to-flow approach, inferred that Bitcoin’s level of hardness will “inexorably increase even further, to a level unprecedented in human history.
The paper maintained that Bitcoin will be the money of the 21st century considering its properties, its high degree of hardness, which has been preferred to the other forms of money since it is a fully opened monetary system that functions on a purely voluntary basis.
Different banks across the world are lending their voice on the present cryptocurrency revolution to the extent that a subsidiary of Germany’s WEG Bank is going to be offering full corporate account to cryptocurrency project. The newly unveiled bank dubbed Ten31 is an innovation of TokenPay, Nimiq, Litecoin and WEG Bank.