You’ve probably heard about as much as you can take when it comes to Tesla (TSLA) and Bitcoin.
Both have surged to new, atmospheric highs as this pandemic rolls along. Elon Musk is seemingly everywhere, even helping to drive up the price of Bitcoin, and all the talk seems to be how high can the EV leader and popular digital currency go?
There’s certainly enough noise around the two to make anyone believe we’re seeing a revolution of industries and the emergence of the next big things in the stock market. While we are seeing something quite transformational, according to JP Morgan (JPM), it has nothing to do with electric cars or cryptos.
Analysts at the popular bank argue instead that fintech innovation is the story that will dominate financial services. In fact, JPM analysts say that despite bitcoin’s monster rally, the cryptocurrency is still beset by a number of issues that may prevent it from becoming a mainstream asset:
“Bitcoin prices have continued their meteoric rise with Tesla, BNY Mellon and Mastercard’s announcements of greater acceptance of cryptocurrencies. But fintech innovation and increased demand for digital services are the real Covid-19 story with the rise of online start-ups and expansion of digital platforms into credit and payments.”
“Traditional banks could emerge as endgame winners in the digital age of banking due to their advantage from deposit franchise, risk management and regulation.”
Digital banking has boomed during the pandemic with large lenders and fintechs like Paypal (PYPL) seeing a surge in adoption as people are spending more time at home due to public health restrictions. Odds are people will get quite used to handling their banking transactions from the comforts of their own living room.