In the year 2020, a large interest by several wealthiest firms in investment is seen towards Bitcoin cryptocurrencies. Many Billionaires came up with a candid statement regarding their Bitcoin thinking and considered it a safer option to secure assets from the inflation phase.
Within recent months, the latest news might have made people pay much more attention to Bitcoin. Pendal Group, a prominent investment firm in Australia, shifts to cryptocurrencies like Bitcoin instead of gold. Before proceeding, you can have an idea regarding the firm size. The biggest firm for investment, Pendal Group, is listed on the “Australian Stock Exchange” publicly and gains a market capital of above $1.6 Billion worth.
It is the latest thing in the institutional and investment dealers list shifting towards Bitcoin cryptocurrency. The firm came up with some statements that show the reason behind such a move from gold to Bitcoin.
With blockbuster news about Bitcoin, it has made it much more popular among people. An Australian Investment Company made a move that left everyone by surprise. Bitcoin news is common regarding people showing interest or no interest in it. But there’s a company from Australia owing billions of dollars that chose Bitcoin over gold. The company showed interest in Bitcoin as a beneficial cryptocurrency far ahead of gold assets. Many other companies are pointing out questions to know about such a huge investment in Bitcoin. The company’s chief executive stated that they considered gold in the right position for their clients for a long time but now shifted to Bitcoin.
Moving to Bitcoin from gold
Within the past years, a standard trend for the investment companies to avoid facing any inflation effects upon their funds was to survive by investing in gold. As per the traditional trend, gold was considered a superior option that safeguarded investments for the wealthiest ones and other individuals.
Though, when comparing gold with Bitcoin, it is not a much easier option for usage purposes. Bitcoin turns out to be highly fluid and potentially features high liquidity when compared with gold. As a result, one can understand that considering gold as a safer option won’t let you decide on investments in action. It might be a reason why several companies are searching for an alternative option for investment purposes.
One of the options picked by Pendal Group was bitcoin rather than gold. Not only this, but other billionaires also showed a greater interest in Bitcoin as a liquid asset rather than choice gold.
What was the reason behind companies shifting to Bitcoins than gold?
Vinay Gor (Pendal Group) stated that all the cryptocurrency and Bitcoin euphoria is not just left to the clientele. He says that several clients are raising different queries regarding cryptocurrency and bitcoin.
With the recent Bitcoin showing up strongly to the mark of $20K within November in 2020, it results in meaning that all these queries can’t stay unanswered for long.
Bitcoin is a better option in comparison with gold
Gor’s states that he assumes Bitcoin as a better option in comparison with gold. Presently, gold is positioned for a long time for the customers, and it is soon changing to bitcoins.
No doubt, gold is not an asset with no power as it is a worthwhile option. Though almost all the world’s assets are practically yielding as a negative asset, gold is a much more powerful asset from all of these options when compared relatively.
When compared to Bitcoin, he said that cryptocurrency is surviving on a higher position than gold. Bitcoin is a useful option with interchangeable properties that wasn’t the case with gold since you can’t just take a bar and pay it or deliver ahead.
Apart from this, he also explained that bitcoin is a better option in society’s digitalization.
Government Bonds won’t survive for long
Vinay Gor also stated that government bonds would turn into a dead asset. He said that he considers such a BTC outline by taking account of the trillion-dollar easing quantitative ways formed by Central banks and bonds from the government turning out to be not very important.
With the occurrence of COVID-19, major trends in the architectural phase got stimulated from the previous ones. One of the major ones involves a drop in the production of the bond. He stated that bond yield is going down for a long time with the central bank’s easing plans.