Analyst: Bitcoin is a good Investment for the time after the Corona
The global crisis and the turbulence on the financial markets, causing many investors to check whether crypto-currencies such as Bitcoin are a good investment for you. A Japanese Analyst has said, after the Coronavirus-crisis, a high level of demand from institutional investors to Bitcoin before and three main reasons why the crypto-currency an attractive investment.
The Covid-19 pandemic has led to an unprecedented economic crisis, with the IMF referred to as the worst recession since the Great Depression. The companies will miss their earnings estimates, and many traditional investments have suffered on a broad Front. The crisis has prompted investors to search for safe investments, and more and more people now question whether crypto-currencies such as Bitcoin are a good investment.
The CEO of Bitcoin Lab, Tetsuyuki Oishi, a crypto-analyst at the Japanese financial company Fisco, announced earlier this week, three reasons why he sees a considerable demand from institutional investors for crypto-currencies after the pandemic.
First, he said that the stock market could lose to the Coronavirus crisis due to the decline in demand for the products of many companies more attractive, which would eventually lead to a decline in corporate profits. He continued:
The largest consensus is that a V-shaped recovery in the stock prices is difficult. Therefore, have to look for investors for other investment opportunities than stocks. Investors can not invest everything in cash.
Next, the Analyst noted that crypto-currencies are attractive because there is still a very low correlation between them and traditional investments. He said: “During the crash both Gold and Bitcoins were of course sold all of the assets, but then they moved again … as a result, there is more scope for the inclusion of assets that are correlated with the uncertain future of the company hardly.
Another reason why investors compared to other forms of investment, more and more crypto-currencies interested is that “under these uncorrelated types of investment, the one who doesn’t [have taken most of the investors in their Portfolios], the crypto-currency is, in particular, the BTC”,
Oishi said. In relation to the interest in crypto-currencies, the Analyst cited earnings report by Grayscale Investments for the first quarter of 2020, the capital inflows of a total of 503.7 million, an increase of US dollars in crypto-currency investment products. “This is the largest scope of all time,” he wrote, adding that 388,9 million dollars for BTC fins in the Grayscale Bitcoin Trust. In addition, 88% of all quarter-to-quarter investments of institutional investors were made. Oishi added: “It is good news that the investors’ interest in virtual currencies has not abated,” and concluded that the interest of institutional investors will continue to the Coronavirus crisis is expected to.
Prior to the spread of the Coronavirus and the subsequent economic turmoil, financial experts recommended to get involved within the investment portfolio to a certain extent in crypto-currencies.
JPMorgan, for example, wrote in a report in February that “for the crypto market Matures further, and the participation of institutional investors on trading with crypto-currencies is now significantly”. In the prediction, that “bonds could lose in the next few years, their ability to hedge the shares portfolio,” suggested the company is that “less restrictive markets such as the Yen and Gold portion of long-term hedges should be”:
Also, crypto-currencies should be included in this list, … because you can secure in a unique way, a previously unknown environment, which is accompanied by a simultaneous loss of confidence in the domestic currency and payment system.
In addition, various financial have recommended to experts, Bitcoin in investment portfolios to be incorporated. The author, Robert Kiyosaki, Rich Dad Poor Dad, has repeatedly said that the Dollar is dead and people should invest their stimulus money in Bitcoin. The Chairman of Virgin Galactic, Chamath Palihapitiya, has vouched for this for a long time, at least 1% of the portfolio in Bitcoin to invest. In addition, the Chairman of Galaxy Digital, Mike Novogratz, pointed out that with all the money the Central banks print, the best time to buy Bitcoin.
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