According to Jim Reid, managing director of Deutsche Bank, Bitcoin is becoming more and more popular as an investment for preserving wealth value.
“There has been an increased demand for Bitcoin from those investors who typically used gold to hedge the risks of the US dollar, inflation, and other such things,” said Jim Reid.
Bitcoin has long been referred to as the digital equivalent of gold, given the limited and known amount of BTC. Many investors emphasize that Bitcoin can be used as a store of value without depending on the banking system. Moreover, the price of gold for 2020 increased by 22%, but the price of the first cryptocurrency increased by 144%.
Reid noted that the first cryptocurrency rose by a quarter this month, while gold and silver lost slightly in terms of value, which is strange. The news that pharmaceutical companies based in the US Pfizer and Moderna had developed a vaccine for the coronavirus led to an outflow of money from wealth holding assets, but Bitcoin was not affected.
A recent survey by the consulting company deVere Group total of 511 of the 700 individuals with a net worth of over £1 million ($1.3 million) either already own cryptocurrencies such as Bitcoin, or plan to add them to the investment portfolio by the end of 2022.
