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Investors Look to Bitcoin As The Asset Class of the 21st Century


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It’s been over seven years since the birth of Bitcoin and as its growth continues in 2016 it is a new asset class for the 21st century. As the Brexit vote approaches, China’s woes are heavily weighing down markets, and socialist regimes failing daily investors worldwide are discovering the cryptocurrency’s value. Very well known economists and researchers are discovering Bitcoin’s potential to be a top asset for the future up there with gold, bonds, fine art, and real-estate.  

Just recently economist and author Ed Yardeni has written an investment report for the newspaper Barron’s. The news outlet is a weekly publication that covers financial information, market developments, and relevant statistics and is owned by Dow Jones & Company. Yardeni says in his editorial the winning portfolio to have in 2016 is “gold, treasuries and Bitcoin.” The economist explains that “Recent developments in the financial markets have done little to bolster confidence in government-sponsored ‘fiat’ currencies.” However, Yardeni details Bitcoin and gold two assets that live outside the stranglehold of government intervention are seeing significant gains. The Barron’s researcher states in the recent report:

“Research papers are declaring bitcoin a new asset class, while Wall Street and other financial institutions are looking at how they can harness blockchain to cut costs and bolster security. Perhaps most dramatically, people in Africa are digitizing their currency and storing it on their cell phones without ever opening a bank account. We’ve maintained that while Bitcoin attracted much attention, it’s really the technology behind the currency, blocktrade, that has the potential to have a more wide-ranging impact on the financial markets. Banks and brokers have begun looking at how blocktrade could be harnessed to track trades and lower trading costs.”  

Barron’s isn’t the only financial publication writing about Bitcoin’s potential. According to the trading magazine, The Street, Bitcoin will rally with other investments such as SolarCity and the Swiss Franc. Alongside this, a recent report from Coinbase and  ARK Investment Management LLC (Ark Invest) also has called Bitcoin a new asset class to watch. The paper written by Ark Invest’s, Chris Burniske, and Coinbase’s, Adam White, details the many properties Bitcoin has as a new investment opportunity like no other. In “Bitcoin: Ringing the Bell for a New Asset Class” the two co-authors say:

“Bitcoin exhibits characteristics of a unique asset class—meeting the bar of investability, and differing substantially from other assets in terms of its politico-economic profile, price independence, and risk-reward characteristics.”

As well as Ark Invest’s report, The Street, and Barron’s editorials the financial markets and investment publication Market Watch has also explained Bitcoin as a top hedge in this turbulent economy. In a report written on June 17 in Market Watch called “Bitcoins are the best investment in my retirement account” author Jack Tatar is pleased with his investment in the cryptocurrency at the moment. The writer explains the road the digital currency has traveled throughout his portfolio investment and in the end, he notes it has been successful. Author Jack Tatar writes:

“Six months into 2016, I’m reporting back to you that, as of this writing, Bitcoin is over $700, and GBTC is trading over $100 a share. It has clearly been the best investment in my retirement account. Do I wish that I bought more? I based my initial investment on an allocation as an alternative investment in my portfolio and thus a smaller position that my equity holdings, so I’m content that these returns came within the context of, what I consider was based on a prudent asset-allocation strategy. At this point, the time has come to finally declare that bitcoin and other cryptocurrencies should be considered investment options for investors.”

These types of reports can be found in a wide array of investment publications at the moment as venture capitalists and investors see Bitcoin’s worth as an asset class. Even Investopedia writes, “Further, the rising demand for alternatives to fiat money continues to bring Bitcoin under the spotlight. Unlike gold, the other popular alternative to government controlled legal tender, Bitcoin can be transferred globally in minutes, with no intermediaries. After a positive and relatively stable 2015, the virtual currency stands on a stronger footing in 2016.”

This type of research and reviewing is clearly “ringing the bell” in investment-land as legitimate, well-known economists and investors explain in greater detail the attributes of the new cryptocurrency asset class.

One thing is for certain is investors are reading these well-known publications opinions and are learning about the new asset class of the 21st century. 

Sources: Ark Invest, Barron’s, Money Watch, The Street, and Investopedia

Images: Barron’s, Ark Invest, Money Watch, Investopedia, and Pixabay

Jamie Redman
Jamie Redman
Jamie Redman is a financial tech journalist from Florida thats been entrenched in the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written hundreds of articles about the disruptive protocols emerging today.


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