Wells Fargo, one of the biggest banks in the US, included a section on Bitcoin in its recently released "Investment Strategy Report". It does not matter why, how or in what context they referred and painted Bitcoin, getting mentioned in the strategy report is a huge gain for the BTC community .
The most important thing coming out of the report is the fact that the bank recognized the importance of Bitcoin as an asset that could be considered for investments.
The report does not have much good things to say about Bitcoin other than "Fads don't typically last 12 years". The report also outlines that there are good things to consider in the cryptocurrency space and the next year would be the timeline when we hear more about the upside and downside of the concept.
I think BTC fans would consider the report to be a win. Irrespective of the way cryptocurrencies are portrayed, it will help raise awareness among the investors.The report acknowledged that BTC is the best performing asset group in 2020 which is up by 170% in a year.
Although the report mentioned that BTC outperformed gold and the S&P 500 Index over the last three years it attributed the volatility associated with it as a word of caution. This is nothing new. BTC and cryptocurrencies are almost always associated with volatility which is true when compared to traditional assets.
Investing vs Speculating
Do you think investing is not speculating? I think that the investment decision we make in a traditional asset class is based on historical data and the company's past performance. Even then, when we make future assumptions we are speculating the future return based on the available financial instruments.
I may not necessarily agree with the report as it suggests crypto investment is speculation and not a real investment. Any investment is speculation whether it's crypto or stock. Yes, you may have more data to speculate on for traditional assets but that does not mean you always have guaranteed return. Agreed, traditional assets have less volatility.