Top financial historian says: Bitcoin is the best investment opportunity
Bitcoin has been in a strong upward trend since the March low of $3,500.
The leading crypto currency is currently traded for $19,220.
Niall Ferguson, a financial historian at the Hoover Institution at Standford University, currently considers Bitcoin one of the best investment opportunities.
Bitcoin – the best investment opportunity in the world?
Bitcoin has been on a strong upward trend since its March low of $3,500. The leading crypto currency is Bitcoin Circuit currently traded for $19,300 – well above last week’s lows and over 400% higher than the March lows.
Analysts believe that the coin is still relatively strong compared to other markets.
Niall Ferguson, a financial historian at the Hoover Institution at Stanford University, believes Bitcoin is one of the best investment opportunities at the moment:
“I will choose BTC. The asset has had an excellent year, which has grown by 165% to date. If you had said at the beginning of the year: “The pandemic is coming. It will be very disruptive. Should I have chosen Gold or BTC?” You would have rightly chosen BTC, because gold has only risen by 21%. So BTC yields were an order of magnitude higher”.
Ferguson points to the fact that investors on Wall Street are finally adopting the crypto-currency:
“The acceptance of Bitcoin as a digital asset, a quasi-digital gold, has been accelerated by this pandemic. Almost every month, some major figure in the world of mainstream investors has said: “OK, now I’m taking BTC seriously”. This process of institutional takeover must continue”.
He believes that an influx of Wall Street billionaires buying Bitcoin with a small percentage of their portfolios will end up driving the price twice as high. Due to a tight supply and HODLer dynamics, BTC’s price action can be extremely recursive during bull markets.
This means that a small amount of capital relative to BTC’s market capitalisation could have an overly large effect on the market:
“If all millionaires in the world were to decide collectively to hold 0.2% of their assets in Bitcoin, the Bitcoin price would be $15,000, which is what it has achieved this year. At 1%, the price would be $75,000 per Bitcoin. As people are embracing this as a new form of wealth that occupies a respectable place in a diversified portfolio, there is still a lot of upside potential”.
Better than gold
By now, Bitcoin is probably accepted on Wall Street as a better investment than gold.
Paul Tudor Jones, a billionaire asset manager known for his outperformance in the 1970s and 2008, considers BTC superior to gold as an investment. According to Jones, BTC could be the “fastest horse in the race” in this environment.