Deutsche Bank says bitcoin is ‘too volatile’ to be a ‘reliable’ store of value

Quick Take

  • Deutsche Bank believes bitcoin is highly volatile to be a “reliable” store of value
  • Bitcoin payments also still represent a “tiny” fraction of global payments, according to the bank

Bitcoin’s price fluctuations do not make it a “reliable” store of value, according to new research from financial services giant Deutsche Bank.

In the first part of its 3-series “The Future of Payments” reports, published last week, Germany-headquartered Deutsche Bank said while cryptocurrencies have “passed the tipping point needed to become fashionable,” they are still in the “early adoption stage.”

Particularly for bitcoin, the world’s largest cryptocurrency, the bank said it is “too volatile” to be a “reliable” store of value. It referenced bitcoin’s sharp price fluctuations during 2017-2018.

Source: Deutsche Bank

Bitcoin payments also still represent a “tiny” fraction of global payments, according to Deutsche Bank, although it said such payments have taken off.

Source: Deutsche Bank

Overall, the bank believes that cryptocurrencies have the potential to "revolutionize" payments. “Looking ahead, it may not be surprising if a new and mainstream cryptocurrency were to unexpectedly emerge,” it added.

In the second part of the series, also published last week, Deutsche Bank said cash would be around for “decades to come.” The third part - “Digital Currencies: the Ultimate Hard Power Tool” - published Monday, states that "a new digital currency could become mainstream within the next two years."

"Still in their infancy, digital currencies have the potential to radically change payments, banking, central banking, and the balance of economic power," said the bank.

Just last month, Deutsche Bank said crypto has the potential to replace cash in the next decade, as the current fiat system looks “fragile.” It added at the time that crypto needs to become legal in the eyes of governments and regulators to become widespread.


© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

AUTHOR

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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