Bitcoin Lab CEO Tetsuyuki Oishi shares three reasons why institutional investors see Bitcoin as a good investment. His reasoning comes from Bitcoin.com.
March 27, Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva announced the start of a global recession. The IMF sees a particular threat in the possibility of a wave of bankruptcies and job cuts that could not only undermine the economy’s ability to recover, but also destroy the very foundation of society.
As the pace of the spread of coronavirus increases and the uncertainty created by it increases, investors thought that they could maintain their value. Bitcoin Lab CEO Tetsuyuki Oishi believes that Bitcoin has this quality.
The stock market, according to Oishi, may lose its attractiveness due to a steady decline in corporate profits.
“Most unanimously believe that V-shaped stock price recovery will be problematic. Investors need to look for other investment options, they cannot stay too long in cash, ” He declared.
The second argument in favor of cryptocurrencies, according to the CEO of Bitcoin Lab, is their low correlation with other traditional investments.
“During a period of market turbulence, a wave of sales affected gold and bitcoin, but they recovered after that. “There are more opportunities to incorporate these assets, which have little to do with the vague future of society.” – explained Oishi his position.
The third factor in the upcoming rise of the first cryptocurrency financial analyst sees a low share of BTC in investment portfolios.
“Among these uncorrelated assets, most investors have not yet bought cryptocurrency,” He says.
In support of these words, the CEO of Bitcoin Lab cited the report of one of the most famous digital asset management companies Grayscale Investments for the 1st quarter. 2020 The inflow of $ 503.7 million, of which $ 388.9 million went to the Grayscale Bitcoin Trust, was a record. At the same time, 88% of all investments were made by institutions.
Despite the fact that, despite turbulence, investor interest in cryptocurrencies has not decreased, but even increased, Tetsuyuki Oishi sees a good sign.
Even before the COVID-19 pandemic, many financial experts began to recommend diversification of investment portfolios by adding digital assets. Not ignored the new market in the financial holding JPMorgan.
“The cryptocurrency market continues to grow. The participation of institutional investors in digital asset trading has now become significant. ” – The researchers noted in February.
In the same report, they predicted that “bonds could lose their ability to hedge stock portfolios over the next few years,” while cryptocurrencies “can clearly hedge an as yet invisible environment, entailing a simultaneous loss of confidence in the national currency and its payment system” .
The author of the bestselling book “Rich Papa, Papa Papa” entrepreneur Robert Kiyosaki predicted the death of the US dollar in April due to the policy of the Federal Reserve System and advised buying gold or bitcoin.
Chamat Palihapitiya, chairman of the board of directors of Virgin Galactic’s tourist space travel company, advised CNBC viewers to keep at least 1% of their assets in bitcoins.
The fact that the unprecedented measures of central banks to support the economy in the long run make Bitcoin attractive as a non-inflationary asset was also announced by the founder of the crypto-trading bank Galaxy Digital, billionaire Mike Novograts.
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