Bitcoin Will Coexist with Gold in Central Banks’ Balance Sheets by 2030: Deutsche Bank Report

Prominent multinational investment bank Deutsche Bank has predicted that central banks will adopt Bitcoin as a reserve asset alongside gold within the next five years.

The report highlighted that Bitcoin is more of a complementary asset to gold, rather than a rival, as some have suggested. The bank noted that both are “safe-haven” alternatives to traditional assets and would continue to gradually eat into the portfolios of central banks.

Remarkably, this sentiment is gaining momentum as industry leaders have repeatedly echoed its reality. For instance, Coinbase CEO Brian Armstrong believes central banks will hold more Bitcoin in their reserves soon but noted that this would be at the expense of their gold stash.

History Is Repeating with Bitcoin: Deutsche Bank

Furthermore, the report shared that Bitcoin looks like early gold, and this time will not be different. Specifically, gold experienced its fair share of turbulence and skepticism in its early days, but has since moved past that phase to become an asset worth over $20 trillion.

Deutsche Bank highlighted that Bitcoin is following this trend and expects Bitcoin to continue seeing a higher adoption rate. It believes that macroeconomic tailwinds and clearer regulatory policies will spur a broader adoption of Bitcoin as a store of value.

Accompanying this global awakening will be a drop in Bitcoin volatility. The report emphasized that Bitcoin would become less volatile over time as liquidity matures, mirroring the trajectory of gold

Additionally, Deutsche Bank mentioned that Bitcoin would transition from a speculative asset to a legitimate component of the global financial system with the US-led adoption push.

“So long as we are human, Bitcoin and other alternative assets will likely continue to compete for our attention,” the report concluded.

Meanwhile, another key highlight of the research is the assertion that Bitcoin and gold will not replace the US dollar as reserve assets. While they, along with other alternative currencies, have shredded the dollar’s dominance, the investment bank claims they will not completely displace it.

Where Could Bitcoin Be By 2030?

With the report suggesting that Bitcoin will enter more central bank balance sheets by 2030, prominent market participants have also predicted the asset’s price for that year. Aside from Pantera Capital founder Dan Morehead’s $750,000 projection, most other outlooks have a threshold of at least $1 million per coin.

Robert Kiyosaki says $1 million; the Winklevoss twins agree with this projection, while Ark Invest predicts even higher prices. The Cathie Wood-led asset manager predicted that $1.5 million is the base case and Bitcoin will reach $2.4 million in a bull case.