Cryptocurrency has a market value of more than $2 trillion, almost equal to the amount of gold held for private investment purposes From Bernstein

The following is the Cryptocurrency has a market value of more than $2 trillion, almost equal to the amount of gold held for private investment purposes From Bernstein recommended by recordtrend.com. And this article belongs to the classification: Blockchain, Bitcoin.

Cryptocurrency bulls have long supported bitcoin as a modern alternative to gold. To some extent, this new market is close to the milestone of surpassing gold. According to a new report released by Bernstein on Tuesday (May 18), the total value of the cryptocurrency market is more than $2 trillion, almost equal to the amount of gold held for private investment purposes.

“Investors need to find a return stream that can hedge the risk of devaluation and spread the risk of stocks at higher inflation levels. These assets (cryptocurrency) may have the potential to play this role, “the company said in a report to customers on Tuesday.

With the support of companies and institutional players, cryptocurrency has become the mainstream, and investors increasingly regard digital currency as a reliable storage of value and a way to diversify their portfolio. Bitcoin, the largest cryptocurrency, traded at about $43300 on Tuesday, with a market value of about $800 billion, according to coin metrics.

But Bernstein was quick to point out that gold and digital money have other uses. According to Bernstein’s calculations, if gold jewelry is included, the market value of the precious metal is close to $8 trillion, about four times that of the cryptocurrency market.

In addition, there are important differences between cryptocurrencies. Bernstein said bitcoin is mainly used for value storage, while other digital currencies such as Ethereum are not just used as an investment.

Bernstein’s comments echoed the views of some large fund managers, who pointed out that the convenience of bitcoin trading may make it more attractive than gold as a safe haven asset and inflation hedge.

Bill Miller, founder and chief investment officer of Miller value partners, said in April this year: “it’s easy to transport, and if you have a smartphone, it can be sent anywhere in the world, so as a hedge, it’s much better than gold.”

“Bitcoin is much more viable than passing gold bars around,” said Rick Rieder, chief global fixed income investment officer at BlackRock

However, there are still problems in the long-term viability of bitcoin, including from the perspective of regulation and environment. Last week, Tesla chief executive Elon Musk said the company would suspend bitcoin as a form of vehicle payment due to “the rapid increase in fossil fuels used in bitcoin mining”, and the price of bitcoin fell accordingly. Musk later clarified on Monday that the company did not sell any bitcoin positions. The company first disclosed a bitcoin position worth $1.5 billion in February.

Looking ahead, Bernstein’s harshita Rawat believes that bitcoin can replace gold once some regulatory and environmental issues are resolved.

“Bitcoin can be used more easily as a store of value anywhere in the world (especially in countries with unstable legal currencies), and it’s very liquid,” she said She pointed out that the cryptocurrency has a 24×7 network and can be traded almost instantly“ As a means of storing value, especially in some countries / regimes, its impact is significant. “

She said bitcoin and cryptocurrency had generally “reached a tipping point” in terms of “institutional / retail adoption, dollar investment, industry talent and liquidity.”.

Nevertheless, Inigo Fraser Jenkins, a colleague of Rawat, is not sure how investors will look at bitcoin in the long run. He pointed out that gold is 5000 years old, and investors didn’t think bitcoin could keep its value until recently.

He believes that it will take many years for bitcoin to build enough trust to become a real security asset“ It involves a very wide range of economic, legal and cultural issues. Any claim that these problems can be overcome in a short period of time seems unacceptable because of their profound social nature. “

More reading from xf168: coinmarketcap: the total market value of cryptocurrency exceeds $500 billion for the first time It is estimated that the global cryptocurrency mining power will exceed the solar power generation in 2019. 21.2% of American college students use financial aid funds to invest in cryptocurrency. In January 2018, the market value of bitcoin evaporated by US $44 billion. Coinmarketcap: in November 2017, the total scale of global cryptocurrency suddenly increased More than one third of cryptocurrency investors know little about cryptocurrency itself Record: 90% increase in cryptocurrency fraud in 2020

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