Is Bitcoin now a must-have? – One more wind vane is turning in the direction of crypto-wind: after having denigrated Bitcoin (BTC) for a long time, the major bank Wells Fargo now recognises its qualities. Indeed, it felt obliged to admit that Bitcoin is by far among the most successful assets of 2020.
Bitcoin, a dazzling progression
Even if it’s only been 2 years, it seems a long time ago when Wells Fargo allowed itself to formally forbid its customers to use their money to buy cryptos via their bank card.
Indeed, on 7 December, the investment advisory subsidiary of the major American bank, the Wells Fargo Investment Institute, published the report of an investment strategy that includes a section on… Bitcoin!
Under the title „Bitcoin – [the] best performing and most volatile asset of 2020“, the Wells Fargo subsidiary admits that the group of assets with the highest returns this year are cryptomoney.
The investment advisory institute thus recalls that Bitcoin performed much better than the SP500 stock market index or gold during 2020, with a +170% increase over the year, an explosion that itself follows a surge that was already at +90% in 2019.
Price evolution index for gold, SP500 and Bitcoin, taking as a reference (100) their respective prices on 23 November 2017.
Bitcoin, a new gold rush?
However, Wells Fargo analysts cannot help but go back to their old habits and criticise Bitcoin a little, pointing out the volatility of its prices. This would be due to the fact that the cryptomoney industry is still in a speculative phase.
„Today’s investment in cryptomoney is somewhat comparable to the beginning of the gold rush of the 1850s, which involved more speculation than investment. »
However, the tone is changing rapidly.
„(…) cryptomoney could one day become an interesting investment. Over the past 12 years, their market capitalization has grown from literally nothing to $560 billion. Fads don’t usually last 12 years.
This section on Bitcoin concludes that Wells Fargo will focus more on the digital asset sector in 2021.
When even the big banks are beginning to run out of arguments for not considering Bitcoin and cryptos as assets in their own right, a major shift in the financial and economic world can be felt. One more positive sign for the future of our cryptosphere?