Bitcoin will soon End Investing | The NEW 60/40 Rule for all Investors (Part -I)
Bitcoin will soon End Investing | The NEW 60/40 Rule for all Investors
When it comes to the 60 40 rule experts are now saying that bitcoin could
soon replace bonds in your retirement portfolio like just recently arc invest
kathy woods said that people should begin treating bitcoin like a new asset
class because it is large corporate and institutional investors are beginning
to use bitcoin as a hedge against the us dollar by buying up a lot of it like.
We just had tesla announced their one and a half billion dollar bitcoin
investment earlier this year paypal announced that
they would enable cryptocurrency as a funding source for
26 million of its merchants they also just bought the crypto security company
curve for 200 million dollars the payment processing company square also
invested 170 million dollars into bitcoin and the analytics company microstrategy
has been keeping a significant amount of their cash reserves in bitcoin plus
they've continued to buy in even at all-time highs when it comes to
this kathy woods said that bitcoin represents insurance
against unhinged monetary policy and outright wealth segregation in some
countries other investors are also advocating for a small allocation
of bitcoin in any retirement portfolio and these aren't exactly small no-name
investors either like jp morgan who not so long ago called bitcoin a fraud that
will eventually blow up and who also said that they would fire
any trader who bought bitcoin because it's against our rules and they are
stupid and both are dangerous is now advocating three years later that
investors place one percent of their portfolio in the cryptocurrency and
they're even launching their own bitcoin exposure basket that gives
access to 11 companies that hold bitcoin goldmansachs also analyzed
300 of their clients and found that 40 of them already have exposure to
cryptocurrency they say this run-up today is a lot different than the mania hype back in
2017 because today it's driven by large institutional
investors who are buying in as a reserve against the us dollar
not by speculation to me it's not exactly surprising either it seems as
though some of the big institutional investors behind bitcoin
are really worried about a few key points i think the first would be
inflation by keeping interest rates low in an effort to stimulate the economy there's
the expectation that at some point there's going to be some inflation as
more people begin spending their money that just means our dollar is going to
be worth less as more money is printed and more demand
pushes prices higher as a way to hedge against that bitcoin is starting to look
like an alternative to holding cash now number two the money supply has
increased exponentially throughout 2020


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