Bitcoin And Crypto Vs. Gold: Portability, Divisibility, Transactability, Programmability
Crypto adoption was one of the main goals of 2019, and it remains like this in 2020 as well.
There have been a lot of moves made in the crypto space in this direction, and things continue to move on the right path.
Overview on the state of Bitcoin
VanEck exchange-trade fund provider has more than $50 billion in assets under management. The entity just released an overview of the state of Bitcoin (BTC).
According to the report, BTC is on its way to becoming digital gold. More than that, the same data highlighted use cases where BTC may have an advantage over gold.
Daily Hodl online publication revealed that Bitcoin and crypto have the ability to outperform gold in more critical areas such as portability, divisibility, transactability, and programmability.
VanEck explained that a small Bitcoin allocation would be able to improve portfolio upside. They also highlighted BTC’s risk and return profile from 2012 to the end of 2019.
“Bitcoin may enhance the risk and return reward profile of institutional investment portfolios. A small allocation to bitcoin significantly enhanced the cumulative return of a 60% equity and 40% bonds portfolio allocation mix while only minimally impacting its volatility.”
Scarcity could drive future BTC bull runs
The same report writes that future bull runs could be driven by scarcity. VanEck also made it very clear that they believe there’s potential investing in BTC, but there are also a few factors that could prevent another bull run from taking place.
The online publication mentioned above details these factors: “Bitcoin’s dangerously extreme price fluctuations, cryptocurrency exchange hacks and the potential for encryption vulnerabilities in the years to come due to the rise of quantum computing.”
We recommend that you check out the complete report in order to find out more details.
At the moment of writing this article, Bitcoin is trading in the green and the most important digital asset is priced at $9,436.53.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.