• About Us
  • Privacy Policy
  • Contact Us
Subscribe
Lascena
Advertisement
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021LIVE
  • Videos
No Result
View All Result
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021LIVE
  • Videos
No Result
View All Result
Lascena
No Result
View All Result

JPMorgan admits Bitcoin’s growth represents a risk to gold as an investment

December 10, 2020
in Bitcoin
Reading Time: 2min read
JPMorgan admits Bitcoin’s growth represents a risk to gold as an investment


Bitcoin has strongly outperformed gold over the past few months.

Since the leading precious metal peaked this past summer at new all-time highs above $2,050, it has faced a 10 percent correction, dropping, then consolidating in the $1,800 region.

BTC, on the other hand, has doubled since the summer, pushing to new all-time highs at $19,900.

According to JPMorgan, Bitcoin is likely to continue gain traction, which may actually present a bear case for gold. The idea here is that BTC may see capital inflows as investors swap the precious metal for the leading cryptocurrency.

JPMorgan talks Bitcoin vs. gold

According to a Bloomberg report, JPMorgan analysts say that there has been an increase in capital flowing into Bitcoin while capital flows out of gold.

The Grayscale Bitcoin Trust, for instance, is receiving weekly inflows of dozens of millions of dollars, while hedge funds are selling their gold positions alongside central banks.

The analysts at the bank expect this trend to continue as thus far, institutional adoption of cryptocurrency has been limited due to a lack of regulatory clarity, infrastructure, and brand power:

“The adoption of bitcoin by institutional investors has only begun, while for gold its adoption by institutional investors is very advanced,” wrote the JPMorgan strategists.

Running the numbers, JPMorgan wrote that approximately 0.18 percent of all family office assets are currently allocated to Bitcoin or related investments. On the other hand, 3.3 percent of family office assets are currently allocated to gold funds.

If these institutional investors begin to see Bitcoin as the superior store of value, gold could lose billions of dollars worth of investment while BTC gains that same amount.

BTC is an alternative to gold: Wall Street

JPMorgan’s report comes as a growing number of institutional investors have acknowledged that Bitcoin is a viable alternative to gold.

Ray Dalio, the co-CIO of one of the world’s largest investment funds, Bridgewater Associates, recently said on Reddit:

“So it could serve as a diversifier to gold and other such store hold of wealth assets. The main thing is to have some of these type of assets (with limited supply, that are mobile, and that are storeholds of wealth), including stocks, in one’s portfolio and to diversify among them. Not enough people do that.”

Others have gone as far as to say that Bitcoin is decisively better than gold as a hedge against inflation and other macroeconomic trends.

Paul Tudor Jones, in a famous May investor letter, wrote that he thinks Bitcoin will be the “fastest horse in the race” in these unprecedented macroeconomic times. Tudor Jones referenced Bitcoin’s ability to store wealth over time as a result of its halvings and fixed supply, which disallows value stored in the asset from being inflated away.

Posted In: Bitcoin, Adoption

Like what you see? Subscribe for daily updates.



Source link

Facebook0
Twitter0
Linkedin0
Print0
E-mail0
Yahoo Mail0
GMail0
SMS0
Messenger0
Tags: admitsBitcoinsGoldGrowthInvestmentJPMorganrepresentsrisk
Next Post
3 Reasons Why Bitcoin Price Could Fall to $14,000

3 Reasons Why Bitcoin Price Could Fall to $14,000

Bitcoin whale accumulation trend on Bitfinex shows $14k or lower isn’t likely

Bitcoin whale accumulation trend on Bitfinex shows $14k or lower isn't likely

Please login to join discussion

Don't Miss

BUY & SELL BITCOIN ON PAYPAL, WTF?? BIGGEST CRYPTO NEWS OF 2020!!! You Have to See This!!!
Cryptocurrency Videos

BUY & SELL BITCOIN ON PAYPAL, WTF?? BIGGEST CRYPTO NEWS OF 2020!!! You Have to See This!!!

by Lascena Cryptocurrency News Education
February 25, 2021
0

Buy and sell Bitcoin on Paypal? WTF? This may be the biggest crypto news of 2020! 👀 BLOCKFI ►► https://cryptolark.co/BLOCKFILARK...

Read more
XRP Ripple IT’S HAPPENING!!! “The Next Epidemic!” | Bill Gates

XRP Ripple IT’S HAPPENING!!! “The Next Epidemic!” | Bill Gates

February 25, 2021
REVEALED: How Hollywood Greenlit The ‘Bitcoin Billionaires’ Movie | Ben Mezrich Interview

REVEALED: How Hollywood Greenlit The ‘Bitcoin Billionaires’ Movie | Ben Mezrich Interview

February 25, 2021
Antminer S17’s Replaces Antminer S9 as THE Bitcoin Miner | Antminer S17E Review, Setup, and Profits!

Antminer S17’s Replaces Antminer S9 as THE Bitcoin Miner | Antminer S17E Review, Setup, and Profits!

February 25, 2021
Fractal From Last Bull Run Says Bitcoin Will Hit $100K By May

Fractal From Last Bull Run Says Bitcoin Will Hit $100K By May

February 25, 2021

Lascena Cryptocurrency News Education

We have all the latest updated and legitimate information related to Blockchain, Cryptocurrency, latest market rates & trends, prices, new regulations along with every other thing that somehow related to crypto or digital currency market. Our main idea is to provide the kind of news that is original and at the same time, it can prove to be beneficial for our audience.

© 2020 lascena.ca

  • About Us
  • Privacy Policy
  • Contact Us
No Result
View All Result
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021
  • Videos

© 2020 lascena.ca

  • bitcoinBitcoin(BTC)$47,209.00-7.33%
  • ethereumEthereum(ETH)$1,495.05-9.74%
  • tetherTether(USDT)$1.010.53%
  • Binance CoinBinance Coin(BNB)$230.42-12.38%
  • cardanoCardano(ADA)$1.070.74%
  • PolkadotPolkadot(DOT)$31.25-10.05%
  • rippleXRP(XRP)$0.433647-9.97%
  • litecoinLitecoin(LTC)$174.98-5.69%
  • chainlinkChainlink(LINK)$24.97-12.11%
  • bitcoin-cashBitcoin Cash(BCH)$492.15-8.84%