Cryptocurrency is considered the best asset class for revenue generation as opposed to traditional investments. T he Bloomberg Galaxy Crypto Index of digital coins is up 66 percent in 2020, beating gold's rally of 20 percent.
In fact, gold and bitcoin rose about 25 percent and 45 percent, respectively in 2020 versus the unchanged S&P 500 Index. Moreover, Ethereum contributed the most gains this year as it accounts for more than a third of crypto gauge's weight, indicated Bloomberg data.
In the past few months, gold made a new all-time high of $2,072, up 42.6 percent in the last decade, but bitcoin gained about 8.9 million percent during the same time, said Buffalo Chase, a crypto-asset trading firm.
It explained the reason behind the bitcoin's surge and said, "Security and scarcity are the topmost reasons why traders have trust in safe-haven assets like gold and bitcoin. Bitcoin would outperform gold in a foreseeable future because it’s easily accessible for anyone with internet and of course a more profitable asset than gold."
Recently, a top Bloomberg analyst Mike McGlone tweeted saying that he thinks bitcoin will reach $100,000 over the next decade.
His tweet read, "Bitcoin is a standout fixed-supply asset that should be a primary beneficiary in a period of limited potential further upside in equity and bond prices, in our view. QE juxtaposed vs. tightening Bitcoin supply leaves adoption and demand as the top price-outlook metrics."
McGlone's statement stands even more relevant as few media reports have said that wealth management funds now own cryptos.
For instance, world's largest sovereign hedge fund, the Norwegian Government Pension Fund disclosed that it owns about 600 bitcoins through its investment holdings. This puts the company's portfolio in bitcoins at around $6.3 million.
Bitcoins are valuable and sold at high rates because it holds maximum supply of 21 million digital coins, and only 18.5 million are in circulation. This indicates that fixed supply protects the asset from getting diluted.
In fact, gold and bitcoin rose about 25 percent and 45 percent, respectively in 2020 versus the unchanged S&P 500 Index. Moreover, Ethereum contributed the most gains this year as it accounts for more than a third of crypto gauge's weight, indicated Bloomberg data.
In the past few months, gold made a new all-time high of $2,072, up 42.6 percent in the last decade, but bitcoin gained about 8.9 million percent during the same time, said Buffalo Chase, a crypto-asset trading firm.
It explained the reason behind the bitcoin's surge and said, "Security and scarcity are the topmost reasons why traders have trust in safe-haven assets like gold and bitcoin. Bitcoin would outperform gold in a foreseeable future because it’s easily accessible for anyone with internet and of course a more profitable asset than gold."
Recently, a top Bloomberg analyst Mike McGlone tweeted saying that he thinks bitcoin will reach $100,000 over the next decade.
His tweet read, "Bitcoin is a standout fixed-supply asset that should be a primary beneficiary in a period of limited potential further upside in equity and bond prices, in our view. QE juxtaposed vs. tightening Bitcoin supply leaves adoption and demand as the top price-outlook metrics."
#Gold & #Bitcoin ended Sept. 21 about 25% & 45% higher in 2020 vs. an almost unchanged S&P 500, indicating a relative value tilt. The certainty of QE vs. fiscal-stimulus uncertainty and a wobbly #stockmarket is a foundation for a performance-baton pass to the quasi-currencies pic.twitter.com/Kqvq7qoVTc
— Mike McGlone (@mikemcglone11) September 22, 2020
McGlone's statement stands even more relevant as few media reports have said that wealth management funds now own cryptos.
For instance, world's largest sovereign hedge fund, the Norwegian Government Pension Fund disclosed that it owns about 600 bitcoins through its investment holdings. This puts the company's portfolio in bitcoins at around $6.3 million.
Bitcoins are valuable and sold at high rates because it holds maximum supply of 21 million digital coins, and only 18.5 million are in circulation. This indicates that fixed supply protects the asset from getting diluted.
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