Undeniably, the pandemic has brought various global crises and financial market disorder, making has many investors looking into whether cryptocurrencies, like bitcoin, a sound investment for them.
A Japanese analyst has predicted high institutional investor claims for bitcoin post coronavirus crisis, giving three key reasons why the cryptocurrency is an attractive investment. With surprising effect of CoVid 19 and that include depression, with IMF calling it the worst downturn since the good Depression, companies are going below corporate target with estimates and lots of traditional investments have taken successful across the board.
The crisis turned investors scrambling to seek out shelter assets, and more people are now asking whether cryptocurrencies, like bitcoin, is a good investment.
In an interview, Bitcoin Lab CEO Tetsuyuki Oishi, a guest crypto analyst at Japanese financial company Fisco, shared three details earlier in the week why he sees considerable demand from institutional investors for cryptocurrencies post the pandemic.
Firstly, he said that the stock exchange may lose its appeal after the coronavirus crisis thanks to decreased demand for several companies’ products, leading to long-term declines in corporate profits. He explained: Most accord is that a V-shaped recovery of stock prices is difficult. Therefore, investors got to hunt down investment options aside from stocks. Investors can’t just put everything in cash.
As mentioned, a Japanese cryptocurrency analyst has predicted considerable demand for cryptocurrencies from institutional investors post COVID-19 pandemic. Bitcoin.com features a crypto exchange where bitcoin, bitcoin cash, and a variety of other cryptocurrencies are often purchased.
One thing we would watch out for, the analyst stated that cryptocurrencies are interesting because there’s still little or no correlation between them and traditional investments. He explained that during the plunge, some butcoins and gold were sold but it was easily recovered right after.
As a result, there’s more room to include assets which will have little correlation with the uncertain future society.” One reasons good to note why investors are going to be more curious about cryptocurrencies compared to other asset types is BTC has not yet been incorporated.
As to the extent of awareness for cryptocurrencies, the analyst cited Grayscale Investments’ Q1 2020 income statement showing capital inflows totaling $503.7 million into cryptocurrency investment products. Thus, the number of investors has not declined.
He even said that this is the largest scale ever, adding that $388.9 million went into Grayscale Bitcoin Trust for BTC. Furthermore, 88% of all investments made within the quarter were by institutional investors.
Numerous analysts, financial experts, and millionaire investors have suggested putting bitcoin in investment portfolios. Rich Dad Poor Dad author Robert Kiyosaki, for instance, has repeatedly said that the dollar is dead and other people should invest in bitcoin. Financial Experts Recommend Bitcoin in Portfolios.
Before the spread of coronavirus and following economic chaos, financial experts were already recommending some exposure to cryptocurrencies within investment portfolios. JPMorgan, for instance, wrote during a February report that
Significant changes show the crypto market has matured in the last years. Some firms suggest that Bonds may lose their power to hedge equity portfolios over several years,” the less concentrated market should form long-term hedges.
A number of experts say it is good to include BitCoin in portfolios
Rich Dad Poor Dad author, Robert Kiyosaki has repeatedly said that the dollar is dead and other people should invest their stimulus money in bitcoin. Virgin Galactic chairman Chamath Palihapitiya has long vouched for allocating a minimum of 1% of portfolios in bitcoin. Additionally, Galaxy Digital chairman Mike Novogratz acknowledged that with all the cash printing central banks do, it’s clock time to shop for bitcoin.
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