Bitcoin’s popularity is on the rise these days, and more investors are flocking towards this hedge against inflation amidst the money printing press in the US.
It’s been revealed that JP Morgan shared three important advantages of betting on Bitcoin these days.
The company recently explained the benefits of investing in Bitcoin despite the large and frequent price fluctuations.
Alex Krüger shared the document on Twitter. In it, the banking firm highlighted the following vital factors for which investors should consider buying Bitcoin:
- the overall favorable market conditions
- the diminishing returns of bonds and conventional hedges
- Bitcoin’s unconventional platform as factors that make the asset worth enduring high volatility
“Why bother considering an unconventional and high-volatility hedge? Three reasons: Equity and Credit valuations look record-rich for a very young business cycle; conventional hedges like DM Bonds barely serve as insurance when US 10Y rates are near 1%; and some as-yet-unseen shocks (materially higher inflation, economically-debilitating cyber attacks, or climate catastrophe) could favor an asset that operates outside conventional channels,” he said.
Check out his tweet below:
What cryptocurrencies have and haven’t done for multiasset portfolios, by JP Morgan’s Cross-Asset Strategy team. pic.twitter.com/9ScrMzQ6z4
— Alex Krüger (@krugermacro) January 21, 2021
Bitcoin has been pumped a lot lately by institutional investors who are a key element for the mass adoption of the king coin.
At the moment of writing this article, BTC is trading in the red, and the digital asset is priced at $32,454.96.
Bitcoin bullish predictions keep pouring in
There have been all kinds of bullish predictions about the price of BTC these days.
Most of them have been made by MicroStrategyu’s CEO Michael Saylor. Earlier today, we revealed that he explained that Bitcoin is monetary energy that will continue to grow and attract possibly hundreds of trillions of dollars in value on the back of loose monetary policies.
“In a monetary expansion environment where I crank the monetary inflation rate up by 15%, that $300 trillion has got to find a store of value that’s not a fiat derivative,” he said.