Banking giant JP Morgan lists three advantages of investing in the world’s oldest cryptocurrency. The assessment by the Cross-Asset strategy team explains the benefits of someone investing in Bitcoin. And this despite the large and frequent fluctuations in the price of the digital currency.
JP Morgan writes about BTC again
Economist and investor Alex Krüger shared the document on Twitter. In it, the company highlights the generally favorable market conditions for BTC, declining returns on bonds and conventional collateral. It is these factors that make cryptocurrency assets worth buying and breeding:
“Why bother with unconventional high-volatility? Three reasons: stock prices appear to be record high for a very young business cycle; conventional collateral, such as DM bonds, barely serve as insurance when their interest rates. in the USA they are close to 1 percent. “
The third factor favoring Bitcoin is the general macroeconomic and political environment (significantly higher inflation, economically devastating cyber attacks or a climate catastrophe), which may favor a resource that “Works outside conventional channels.”
Invest but wisely!
In his publication, JP Morgan also claims that small allocations to cryptocurrency assets can improve portfolio efficiency due to higher returns and a tendency to move somewhat independently of the traditional market. However, the company predicts that the correlation between cryptocurrency assets and the traditional stock market may increase as the financial sector sees Bitcoin entering the mainstream.
In November, JP Morgan also predicted that investors with large amounts of cash could give up gold ETFs in favor of their bitcoin counterparts. In addition, this top banking institution assumes that if Bitcoin can capture even a fraction of the gold market value, it will be able to double or even triple its price.
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