Wells Fargo Compared Investing In BTC To The 1850’s Gold Rush

Wells Fargo compared investing in BTC to the 1850’s Gold Rush according to a new report and it even said that BTC is a speculative asset just like gold was, and it even outperformed other investment tools as we can see more in today’s Bitcoin news.

Despite looking at BTC as the best performing asset in 2020, Wells Fargo compared in a recent report which the industry is still predominated by speculation rather than traditional investing. The major US financial company compared BTC with the gold rush in the 1850s. Wells Fargo explored the performances on other financial assets during this year, as per the report.

The paper said that it is “fitting” that the best-performing asset group in 2020 has some of the “crazies sounding name-cryptocurrencies.” The document outlined the biggest crypto asset which is BTC with its year-to-date increase down from 160%. However, Wells Fargo warned investors not to feel left out because of the BTC price fluctuations. The organization said that the asset outperformed gold and the S&P500 index in the past three years with BTC holders enduring a huge “volatile” journey to get there:

 “Cryptocurrency investing today is a bit like living in the early days of the 1850’s gold rush, which involved more speculating than investing.”

The paper further noted that while most investors heard of digital assets and they also continue to steer clear from purchasing or using them. Crypto assets “attract lots of attention but not necessarily lots of investment money.” It’s worth noting that the narrative shifted in 2020 with tech companies like MicroStrategy and Square as well as the US Insurance giant allocated millions of dollars in BTC. The main cryptocurrency received recognition from a few traditional investors like Paul Tudor Jones III, bill Miller, and Stan Druckenmiller.

Wells Fargo also admitted that crypto-assets increased from basically zero to $560 billion in market cap in the past 12 years but this market cap is still about one-fourth the size of the S&P500 company that has the biggest market cap. The organization promised to discuss more the crypto industry in 2021 as they provide more viewpoints that everyone should hear about.

As recently reported, Wells Fargo is one of the few banks that are providing leniency for their customers and some are now allowing their customers to pay their mortgages later. Other is doing the same for credit card payments and it is safe to believe that they will make more concessions during this global crisis.