- Morgan Stanley explains in his report that various investors are holding Bitcoin for the long run
- Morgan suggests that the situation is likely to change due to major payment giants entering the crypto space
- Some affiliated retail stores are planning to launch a transaction associated with digital currency
Morgan Stanley, a primary US investment institution, recently released a report on crypto-assets. Per the report, Morgan Stanley states that more than 50% of all registered Bitcoins exceed the holdings of 100 Bitcoins.
Detailed analysis of the surging Bitcoin demand by Morgan Stanley
Morgan explains that instead of trading or employing it for settlement, various investors hold the world’s leading crypto asset for the long run. Morgan also argues that Bitcoin will lose its alluring value exchange image if the liquidity continues to fall.
However, he suggests that the situation is likely to change due to major payment giants entering the crypto space. For example, PayPal also announced its plan to launch digital currency-related services in October last year.
The ecosystem is going to witness the arrival of conveniently accessible trading and payment services. With these provisions, new entrants may flow into the crypto space and increase liquidity.
New associations with crypto-related services
PayPal, a renowned payment entity, created a service that facilities the user to purchase, sell and hold digital currencies in the US. The company, as of now, manages four types of labels: Bitcoin and three others. The company is planning to widen its services beyond the United States’ realm in the near future.
Furthermore, affiliated retail stores are also planning to launch a transaction associated with digital currency by this year’s end. The service will act as an aid to consumers’ use of digital currencies in their regular payments. It will enable the possibility of payments with Bitcoin and other significant crypto assets at around 29 million retail stores worldwide. Thus, there will be a significant improvement in terms of convenience.
Ruchir Sharma, Chief Global Strategist at Morgan Stanley, also reflected positively on the future of the flagship crypto token. As per his report, there will be new printing of 20% of the US dollar market. The printing of new dollars will enhance the attractiveness of Bitcoin, with due acknowledgment of its comparative supply limit.
Bitcoin currently holds a market capitalization of around $ 830 billion. Besides, 27% of US millennials own digital currency. There are strong chances that the possession of Bitcoin and other crypto-assets will strengthen in the younger generation.
Ruchir concluded his argument by stating that the current surge in Bitcoin prices needs proper attention. Thus, it is not just a form of an unreasonable frenzy.
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