Wells Fargo named bitcoin as the most profitable investment asset of 2020
Financial conglomerate Wells Fargo, one of the “big four” US banks, has published a new investment report, in which a separate page under the heading “Bitcoin – the most productive and most volatile asset of 2020” is devoted to the cryptocurrency market. The authors do not directly urge clients to invest in digital assets, but generally maintain an optimistic tone with regard to their prospects..
“Over the past 12 years, they have grown from literally nothing to a $ 560 billion market cap,” writes Wells Fargo. “Hobbies don’t usually last 12 years.”.
Despite the rather obvious statements for participants in the cryptocurrency space, they can become news for mass investors, who are the main audience of the report. The bank notes that bitcoin is up 170% over the year, but warns about its high volatility.
“If you feel like you missed out on profits, drop it. The chart shows that Bitcoin has indeed surpassed gold and the S index&P 500 over the past three years, but look at the volatile path bitcoin investors have had to take to get here, analysts urge. – Up until the last two months, 3-year yields were mostly in line with other asset classes, but volatility was different. Investing in cryptocurrencies today is akin to life in the early days of the gold rush of the 1850s, which involved more speculation than investing. “.
As shown in the chart, bitcoin, gold and the S index&The P 500 started from a single point and showed a comparable trajectory over the course of three years, but at the end the bitcoin line sharply rushed up.
“Nevertheless, cryptocurrencies may someday deserve attention as an investment asset,” analysts conclude, adding that they will continue to monitor the development of the bitcoin market in 2021 and share their observations with potential investors..
Notably, in mid-2018, Wells Fargo prohibited customers from using its credit cards to buy cryptocurrencies..
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