May 04, · Bitcoin on Wallstreet: BTC Related Companies Trading on the Stock Exchange May 4 · UTC | Updated Jan 22 · by Baran Giresunluoglu · 4 . Dec 01, · Wall Street starts taking Bitcoin seriously Meanwhile, the traditional financial markets undergo seismic shifts in attitude towards Bitcoin, which is often referred to as Digital Gold. Dec 01, · “If the debasement trade works, it is very possible Bitcoin works better,” he said. “But it is also possible Bitcoin has no value in years to come, while I do not think the same can be said of gold.” One thing that’s clear is Wall Street is taking Bitcoin seriously in a way that it didn’t in
Bitcoin trading on wall streetTrading Bitcoin on Wall Street
The digital currency is a trading ground for a motley crew of retail players, speculative pros and exotic quants, while traditional investors have hitherto stayed on the sidelines. Grayscale Bitcoin Trust, the preferred vehicle for institutional investors, has doubled in dollar terms since the start of August. For these reasons investors are naturally comparing it to gold.
With market-derived inflation expectations relatively stable, one conclusion might be that gold is simply moving along with animal spirits, while Bitcoin has been in a speculative fervor. Bitcoiners who missed rally express relief and regret. Bernstein strategist Inigo Fraser-Jenkins in a report Monday. For our latest videos, subscribe to our YouTube channel.
Meanwhile, the traditional financial markets undergo seismic shifts in attitude towards Bitcoin , which is often referred to as Digital Gold. Multiple Wall Street behemoths have been diving into the new market to diversify their portfolios and be better prepared for the potential economic woes caused by the COVID pandemic.
Moreover, the growing interest in Bitcoin coincides with the investment outflows from Gold. Meanwhile, Grayscale Bitcoin Trust enjoyed a steady flow of capital. Since the beginning of August, the investments in this vehicle doubled in dollar terms. First, there is a generational factor. Bitcoin is a new type of asset driven by demand from millennials, while gold is a darling of baby boomers. Gold was really the safe asset of the past world and baby boomer generation.
Now it's being replaced by automated assets like Bitcoin. Considering that the share of millennials and Zoomers another name for Generation Z is set to grow, while the old guard will be leaving the game, Bitcoin's share in the investment portfolios will increase over time.
Second, Bitcoin proved its credibility as a store of value. Many investors start to regard it as an appealing sore of value during periods of economic uncertainty and unprecedented loose monetary policy. Unlike gold, it is driven both by inflation fears and risk rallies. If the precious metal tends to retreat when the demand for safe-haven subsides, Bitcoin continues growing.
Third, it's a matter of transparency. All Bitcoin transactions are registered on the public blockchain and can be reviewed by anyone at any time. On the other hand, gold is traded over-the-counter on the London Exchange with much less data publicly available.
The transparency in Bitcoin is helping drive a lot of interest. Gold is kind of like a black box, you have to trust the custodians to tell you about any flows in the market.