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- Bitcoin is the least favourite investment asset among 25 CIOs surveyed over two rounds in Goldman Sachs
- The financial giant had stated last month that Bitcoin was a new investment asset class that would help in diversification
- Bitcoin’s volatility and fear of missing out (FOMO) is driving new investors to it with aim to ride the highest of curves
Institutional investors have taken the Bitcoin plunge as they seek better returns within a short time frame. Fund managers and investors have shown a keen liking towards digital currencies as they have a clear mindset about investing in it.
It was just last month that Goldman Sachs had stated that Bitcoin was here to stay and should be considered as a new asset class. However, a recent survey conducted among 25 CIOs in the asset management company, revealed that they least prefer Bitcoin as an investment medium.
With its limited supply, investors are wary of price fluctuations and deem it to be an unnecessary investment. The inflation numbers with respect to the consumer price index will come out on Thursday as the unemployment continues to rise day by day. Given all the hiccups, demand for Bitcoin has drastically risen over the last year.
Crypto will unify the world’s financial system
Digital currencies will ring in a new flavour in finance with a public ledger supported by a blockchain network. An asset with a market capitalization of $1 trillion has found many takers as Bitcoin continues its vast expansion across the globe.
Several institutional investors have labelled it digital gold and formed cryptocurrency exposure basket and derivative products that help derive value from Bitcoin and altcoins likewise. The decentralised nature of cryptocurrencies will unify the global financial system. The distributed ledger technology outperformed the Nasdaq 100 by 300% at one point of time.
Cryptocurrencies will help build a better future with a rise in economic activities. The integration of the unbanked throughout the globe will provide greater opportunities to improve diplomatic relations. Moreover, lower transaction costs and empowerment of entrepreneurs will drive growth towards a better and sound financial economy.
Boost for international payments and transparency
International payments will take place within seconds once cryptocurrencies are accepted by all the countries. It will provide a network of transparent transactions that can be verified by anyone present in the nodal structure of digital currencies.
Millions will soon start to invest, trade and save in digital currencies and increase their wealth. Lastly, virtual currencies can be easily converted to fiat currencies for improved use not so technologically sound investors/traders.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
