Financial experts around the world have differing views on Bitcoin and the crypto market. This is especially so when it comes to the issue of whether cryptocurrencies should even be recognized as an asset class. However, a new analysis by Bank of America indicates that Bitcoin and crypto is an asset class.
A tweet by Carl Quintanilla, who is a well-known news anchor at CNBC claims that the Bank of America Merrill Lynch considers Bitcoin to be the performing asset class of this decade. The tweet goes on to state that the Myanmar Kyat is the worst-performing asset class of the decade.
According to Quintanilla, if someone had invested $1 in 2010, that investment would be worth over $90,000 today. However, if someone had invested $1 in the Myanmar Kyat in 2010, his or her investment would be worth about $0.004 today.
A Great Decade for Bitcoin
The tweet by the CNBC anchor perfectly summarizes just how well Bitcoin and the entire crypto market have been performing since it was first revealed. It has been a long road from just a decade ago when it was an internet fad amongst nerds. Today, it is considered a major investment vehicle that has attracted the interest of major institutions. To put things into perspective, on May 22, Laszlo Hanyecz bought a pizza for 10,000 BTC, which would be worth around $70.7 million today.
Bitcoin has also sparked a major interest in blockchain technology, with millions of dollars being invested to develop efficient solutions for various industries, including central banks. It is worth noting that the past performance of BTC is not a guarantee of future performance. Despite this, its past stellar performance is certainly an indication that it is not yet time to write off BTC in spite of its current lukewarm performance.
The Future Holds a Lot of Promise for BTC
The next decade might turn out to be just as great for Bitcoin as its first decade. This is especially so with the growing interest in the regulation of the crypto sector. Formal regulation and streamlining of regulation of crypto and blockchain technology will most likely provide BTC a boost.
While Bitcoin is worth over $7,000 today, it is worth noting that less than one percent of the global population own Bitcoin. As such, most of the future growth in BTC and the crypto sector could come from mass adoption. It is thus important for everyone in the crypto market to work towards growing awareness of the crypto market if the stellar performance of the last decade is to be replicated.
It is also important for stakeholders in the crypto world to engage in constructive dialogue with policymakers. This will help to eliminate the scourge of illegal actors such as hackers and fraudsters that plagues the industry. Every time a new fraudulent scheme is revealed in the crypto industry, it scares off potential investors. There is thus a need to invest in security solutions that offer dependable security to potential investors and deter bad actors.
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