A new VanEck report suggests that institutional investors should devote a percentage of their capital to Bitcoin.
VanEck is an investment management firm. One of his latest reports, published on January 29, was dedicated to Bitcoin. Specifically why it was a good idea for investors to decide to bet on cryptocurrency, even if it were in small amounts.
According to the report, «Bitcoin can improve the risk and profitability profile of institutional investment portfolios».
In addition, some investors assured VanEck that they received great benefits for investing in the cryptocurrency. According to the report, they ensure that:
“A small allocation to Bitcoin significantly improved the cumulative return on a combination of portfolio allocation of 60% equity and 40% bonds, while only minimally affecting its volatility.”
Which shows that betting on Bitcoin could be one of the best decisions made by an institutional investor who wants to grow his business and make more profits.
But, although both the report and the testimony of other investors indicate that it would be best to bet on BTC, there are still obstacles to overcome.
The report also explains what obstacles investors are facing when trying to adopt cryptocurrency. First, the nature of Bitcoin as a bearer asset. Second, the lack of infrastructure that links them to capital markets.
Bitcoin can be more than it is today
VanEck also states that BTC could potentially become digital gold, given its scarcity, monetary value and ease of transfer. Although researchers admit that Bitcoin is not a currency, they say it has the potential to become one.
“Bitcoin is not really a currency, but it is certainly a money, however, it can become a currency in the future.”
In fact, the report dedicated a segment to compare in depth the characteristics of the US dollar and Bitcoin. The conclusion reached was that the digital currency had more characteristics that are desirable in an asset that serves as money than gold itself.
However, other members of the community prefer not to compare it with gold, but instead give the cryptocurrency its own value without comparing it with the mineral.
The truth is that many in the crypto community have high hopes for Bitcoin as an investment asset. Even the founder of Creek Digital suggested that the fact that the cryptocurrency is in a bullish rally represents its first step on its way to reach $ 100,000 this 2020.
I am a student of International Studies, interested in new technologies and their impact on the world. Faithful believer that tenacity is the basis of success.