The analysts say central banks could be forced to ease policy on the back of deflationary outcomes. If this happens, the use case of Bitcoin as a digital version of gold will strengthen. The analysts point out that Bitcoin will start performing like the US long-dated treasury bonds and metal.
There are many factors that could influence its price, they think that a major one is the number of people who have it and how much they hold. They also point out that if there are more buyers than sellers, the price will rise.
The analysts say that if you want to consider virtual currencies as an investment vehicle then you need to know about their volatility. They say that in order for them to be considered as a viable alternative way of investing, they need to be stable enough so that people can buy them without fearing losses.