Experts from the world famous bank JPMorgan Chase & Co admit that large investors are slowly transferring their capital from gold to Bitcoin.
According to them, the adoption of cryptocurrencies among the “sharks of the market” is only in its infancy, but already promises to bring huge amounts of money to the digital assets industry. It looks like many institutional investors are finally clear on the benefits of crypto versus precious metal. And they are ready to act.
A particularly important point in this situation is that the head of JP Morgan Jamie Dimon spoke out openly against cryptocurrencies in 2017. In October, he even noted that BTC buyers would pay for their stupidity. And in addition, he promised to fire every employee who invests in Bitcoin.
Accordingly, in a few years, even the largest opponents of modern technologies can radically change their point of view and recognize their advantages against the background of already established assets. We believe that this only proves once again the huge potential of cryptocurrencies.
Which is better – Bitcoin or gold
Here is a quote from JPMorgan strategist Nikolaos Panigirtzoglu in which he outlined the current situation. The cue is from Decrypt.
The adoption of Bitcoin by institutional investors has just begun, while the use of gold in the financial arena is already at a very high level.
It is important to note that the relationship of large investors with cryptocurrencies is just beginning. This is despite the fact that we know at least seven serious companies that have already invested hundreds of millions of dollars in BTC. Accordingly, in the future, this trend will only become more stable.
The bank expects to see big changes in institutional investor preferences in the coming years. Investments in the Grayscale Bitcoin Trust have increased by $ 2 billion since October, according to JPMorgan, while gold-backed exchange-traded funds (ETFs) have experienced $ 7 billion in capital outflows over the same time period. That is, cryptocurrencies are already beginning to outpace the main precious metal.
Capital outflows from ETFs on gold are highlighted in red on the chart amid rising Bitcoin prices
Grayscale also announced yesterday that it has over $ 12 billion in digital assets under its management, of which around $ 10.4 billion is held by Bitcoin. And this is just one of the giants who have contacted BTC.
As we have already noted, some large investors managed to make a big bet on Bitcoin. For example, Global Macro Investor CEO Raul Paul recently transformed his portfolio of liquid assets, part of which consisted of 25 percent gold, 25 percent bitcoin and 25 percent cash. Now his portfolio is 98 percent composed of cryptocurrencies and a few more bonds. He invested his personal fortune in Bitcoin and Ethereum at an 80/20 ratio.
Currently, only 0.18 percent of family office assets are held in bitcoins, compared with 3.3 percent in gold ETFs, but even the slightest change in this distribution will translate billions of dollars into the cryptocurrency industry. In other words, the balance sheet and the precious metal’s dominance as the best store of capital will soon falter.
What is most interesting is that from a technical point of view, Bitcoin has almost all the advantages of gold and does not suffer from its disadvantages. Cryptocurrency is much more convenient to transfer and store, therefore, in the long term, the digital asset market can completely absorb the precious metals market. That is, a significant part of the capitalization of the latter will be poured into Bitcoin.
And finally, we can recall the fresh and obvious reaction of Peter Schiff, a longtime opponent of BTC and an active supporter of gold. Even despite the growth of the main cryptocurrency, he advises crypto enthusiasts to get rid of bitcoins and pour money into gold. Now it looks more like not even criticism, but the angry arguments of a person who missed the opportunity to make a fortune on Bitcoin.
Articles like this should get any wise investor to sell Bitcoin and buy gold. Even cryptocurrency lovers looking for a long-term need to lock in profits in BTC and buy more gold.
Peter Schiff. For his great love for gold, he is often called the “Golden Beetle”
We believe that such conclusions of analysts from the bank, whose head previously actively criticized Bitcoin, can be considered a victory for cryptocurrencies. After all, in the end, it turns out that even avid haters of coins on the blockchain give up before their merits and recognize the potential of the crypt.
Therefore, here it remains only to rejoice once again. Apparently, a similar outcome is expected by most critics of cryptocurrencies. The only exception will be Peter Schiff, who became especially famous for his hatred of Bitcoin and adherence to gold. It is simply unprofitable for him to get rid of this status, which means that such calls will continue to sound.