JPMorgan said bitcoin was a “by-product of the economy” and that financial technology innovation would dominate financial services. Analysts at the bank said that despite the sharp rise in bitcoin, the cryptocurrency is still plagued by a series of problems that could prevent it from becoming a mainstream asset. “Bitcoin prices continue to soar as Tesla, bny Mellon and MasterCard announce greater acceptance of cryptocurrencies,” JPMorgan said in a research note “But with the rise of online start-ups and the expansion of digital platforms into credit and payment, financial technology innovation and increased demand for digital services are the true story of coronavirus.” Bitcoin has won the favor of major Wall Street banks and fortune 500 companies. This development has pushed up the price of bitcoin, with a market value of $1 trillion. Investors compare bitcoin to gold as a new way to store digital value because of its limited supply – the total number of bitcoin is capped at 21 million. JPMorgan’s own strategist said bitcoin could rise to $146000 as it competes with gold as a potential hedge against inflation in the new coronavirus crisis. Skeptics, however, remain unconvinced. Economists such as Nouriel Roubini say bitcoin and other cryptocurrencies have no intrinsic value. According to a recent survey by Deutsche Bank, investors see bitcoin as the most extreme bubble in financial markets. *Digital gold? *Unless the volatility of the cryptocurrency is reduced, the current bitcoin price appears to be “unsustainable,” according to JPMorgan strategists. Their target price of $146000 depends on the volatility of bitcoin “converging to gold”, which may take years to achieve. At the same time, analysts at JP Morgan said cryptocurrency had “dubious diversification benefits” and was listed as the “worst hedge” against a sharp fall in share prices. JPMorgan has been taking advantage of its cryptocurrency, JPM coin, and a new business unit called Onyx to move into blockchain technology. JP Morgan believes that the rise of digital finance and the demand for financial technology substitutes are “the real story of financial transformation in the era of coronavirus”. “Competition between banks and fintech is intensifying, and large technology companies have the most powerful digital platform because of their access to customer data,” the bank said “The” cooperation and competition “between” financial “and” technology “participants is ahead. Banks increase investment to narrow the technology gap. Competition between US banks and non bank financial technologies is also in the regulatory field.” Big technology companies such as apple and Google have recently shown increasing interest in financial services. Apple teamed up with Goldman Sachs to launch its own credit card, while Google, after working with Citigroup, allowed its users to open checking accounts. “Traditional banks may be the ultimate winners of the Digital Banking era because of their advantages in deposit franchising, risk management and regulation,” JPMorgan said Digital Banking is booming in the era of new coronavirus. Due to public health restrictions, people spend more and more time at home, and the adoption rate of large banks and financial technology companies has increased significantly.