More and more rumors are surfacing regarding how Bitcoin can replace gold as the primary alternative investment opportunity. Digital currency is a serious asset, and investors are looking for new ways to make money. Gold is becoming less desirable, and its value has been on the decline for a large part of 2016 as a result. Silicon Valley-based entrepreneurs Michael Dunworth feels professional investors are “waking up” to the Bitcoin opportunity.
Bitcoin is Gaining Mainstream Momentum
The recent Bitcoin price gains have attracted a lot of attention, even from mainstream investors. Bitcoin has been the best performing asset of 2016, with a near 250% growth compared to December 2015. Despite a Bitcoin price retrace over the past few days, Bitcoin remains one of the most popular investment vehicles for traders looking to make a decent profit in the coming months.
Michael Dunworth, CEO of Wyre, feels mainstream traders are [finally] waking up to the investment opportunity Bitcoin presents. This change has been coming for some time now, as the continued success of this cryptocurrency did not go by unnoticed. Even financial advisers start to see the merit in Bitcoin, from a speculative point of view.
According to Dunworth, Bank of America, hedge funds, and high net-worth individuals are all diversifying their portfolio with Bitcoin as of late. This is a strong statement, as it goes to show even banks show an interest in cryptocurrency right now. Not too long ago, the same bank opposed bitcoin and dismissed it as a fad. Another sign of how things are slowly coming full circle for Bitcoin and future growth of the ecosystem is only a matter of time.
But Dunworth took his statements one step further, by adding that:
“Bitcoin will replace gold, and internationally it will replace the USD as the global reserve currency – 20 years or so from now that is,Bitcoin has a superior value to gold in its store of value and usability. However, it has received nowhere near the same penetration [as gold].”
It would be quite intriguing to see Bitcoin challenge gold as the go-to asset for portfolio diversification. It is not impossible this change will happen in due time, though. Volatility in the Bitcoin market remains a problem, as it turns away potential investors. At the same time, it is this volatility that allows for financial gains over time, whereas gold seems to be hovering around the same price point for extended periods of time.
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