Global FX Strategy analyst John Normand at J.P. Morgan has published a report on bitcoin, and it’s probably the most positive piece you’ll read on the digital currency.
“At the risk of sounding like a luddite, bitcoin looks like an innovation worth limiting exposure to,” says Normand in the report. “As a medium of exchange, unit of account and store of value, it is vastly inferior to fiat currencies.
Since governments are quite unlikely to accord it the status of legal tender, bitcoin or other virtual currencies would not reach the scale and scope to render them worthwhile for widespread commerce, payments or investment.”
Normand says that traditional currencies don’t become used widely through “grassroots campaign[s]”, but rather, because a government declares them legal tender.
It’s essentially a sentiment you would expect from a traditional financial institution, but if you’d like a more complete summary, fellow Bitcoin news site CoinDesk has put together a great piece summarizing this paper.