318 Interactions, 2 today
- Bitcoin has been on a strong rally since the March lows of $3,500.
- The leading cryptocurrency currently trades for $19,300.
- Niall Ferguson, a financial historian at the Hoover Institution at Standford University, recently said that he thinks Bitcoin is one of the best investment opportunities right now
Bitcoin Could Be the World’s Best Investment Opportunity
Bitcoin has been on a strong rally since the March lows of $3,500. The leading cryptocurrency currently trades for $19,300, far above the lows of last week and over 400% higher than the March lows.
Analysts think that the coin still has relatively upside compared to other markets.
Niall Ferguson, a financial historian at the Hoover Institution at Standford University, recently said that he thinks Bitcoin is one of the best investment opportunities right now:
“I’m going to go with BTC. It has had a stellar year, up 165% year to date. [It’s now above $19,000.] If, at the beginning of the year, you had said, “The pandemic is coming. It’s going to be very disruptive. Should I choose gold or BTC?” you would have been right to choose BTC because gold is only up 21%. So BTC returns have been an order of magnitude higher.”
Ferguson largely pointed toward the fact that Wall Street investors are finally embracing the cryptocurrency:
“The acceptance of Bitcoin as a digital asset, a quasi-digital gold, has been accelerated by this pandemic. Almost every month, some major figure in the mainstream investment world has said, “OK, now I’ll take BTC seriously.” This process of institutional adoption has further to run.”
He thinks that an influx of Wall Street billionaires buying Bitcoin with a small percentage of their portfolios will end up driving the price doubly higher. Due to a scarce supply and the HODLer dynamic, BTC’s price action can be extremely recursive during bull markets.
This means that a small amount of capital relative to BTC’s market cap could have an outsized effect on the market:
“If all the millionaires in the world collectively decided to hold 0.2% of their assets in Bitcoin, the Bitcoin price would be $15,000, which it reached this year. If it was 1%, then the price would be $75,000 per Bitcoin. So, as people adopt this as a new form of asset that has a respectable place in a diversified portfolio, there is still quite a bit of upside.”
Better Than Gold: Wall Street Investors
These comments come as Bitcoin has been accepted on Wall Street as likely a better investment than gold.
Paul Tudor Jones, a billionaire asset manager known for outperforming in the 1970s and 2008, recently said that he thinks BTC is better than gold as an investment. He explained that BTC could be the “fastest horse in the race” in this environment.