The Financial Markets are not unaware of BTCUSD anymore. Bitcoin always gets its share of criticisms and support from the conventional stock markets.
Even the giants from Wall Street are not able to stop talking about Bitcoin. World’s biggest investment bank, Goldman Sachs, drew a lot of flak after claiming BTCUSD not to be an asset class.
Bloomberg claims BTCUSD appreciation is inevitable
It is not just the investment banks that are going gaga over Bitcoin. The Wikipedia of the Financial world, Bloomberg, recently came out with a report saying that Bitcoin’s appreciation will undoubtedly occur if nothing goes wrong.
Several other Financial institutions have dedicated extensive research to BTCUSD. JP Morgan recently announced that they felt at $9,000 (which is what Bitcoin was trading at the time of the announcement), BTCUSD, was undervalued.
Hedge funds are increasingly drawn towards Bitcoins and Altcoins. Cryptos such as Tether [USDT], Ethereum [ETHUSD], and Bitcoin Cash [BCH] are also gaining a lot of popularity.
Here is the BTCUSD daily chart:
Raw comparison between Stocks and BTCUSD
The Coronavirus pandemic showed us the way the central banks around the world resort to printing fiat. They printed an enormous pile. As a result, the value of the currency will drastically reduce.
Considering that preposition, it only makes sense to invest in assets that grow in value at a rate higher than inflation. BTCUSD increased by 900,000% in the last decade.
However, it is vital to understand that Bitcoin has its share of problems. Although it appreciated insanely, one’s entire retirement corpus cannot be in BTCUSD. The same goes for stocks!
Understanding Risk appetite is essential while investing in BTCUSD
Benjamin Graham, known as the father of Value Investing, said that there are two kinds of investors:
- Conservative Investors- Those who are risk-averse
- Aggressive Investors- Those who prefer to take more risk in anticipation of higher returns
Graham advised that one should diversify their portfolio as per their risk appetite.
Bitcoin is undoubtedly a risky asset. Therefore, anyone thinking about investing in BTCUSD should think about how much they are willing to risk!
