Tuesday, March 16, 2021

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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