Watch What Big Banks Do About Bitcoin — Not What They Say

Bitcoin’s potential, as well as its resilience and performance during difficult times, has been catching the attention of previous naysayers.

In a significant reversal of opinion, Jamie Dimon, J.P. Morgan’s CEO, is now praising Bitcoin (BTC), noting its “longevity as an asset class.” It’s another example of an institution admitting that BTC has withstood the test of time and that it has beat every naysayer as it outperforms all other asset classes.

Dimon’s reversal from the days when he threatened employees with termination if they dared trade BTC, is comforting news for money managers who have been sitting on the fence. With well-known and respected investment managers like Paul Tudor Jones invested in BTC, Wall Street fund managers have a green light to get involved.

In fact, 2020 marks the year when Wall Street money managers started getting increased pressure by customers to invest in BTC. This is a significant change from the previous ten years.

A survey of institutional investors conducted by Fidelity Digital Assets in early 2020 included the following findings:

  • 36% of institutional investors surveyed currently invest in digital assets
  • Almost 60% of all investors surveyed have a neutral or positive perception toward digital assets
  • Almost 80% of investors find something appealing about digital assets
  • More than six out of 10 investors feel digital assets have a place in portfolios
  • 91% of participants stated they expect to have at least a 0.5% crypto allocation in their portfolio within the next few years

The report paints a very positive picture for the future of crypto assets as institutional interest continues to grow. Like it or not, Wall Street is coming.

Up until 2020, almost all buying pressure came from retail investors. The addition of institutions will add significantly more buying pressure and naturally drive prices higher.

This added interest is supporting investments in additional infrastructure improvements in many operations. Also, government regulations are providing a safer and more secure environment for institutional investors.

Bitcoin in your IRA

Since the IRS has declared cryptocurrencies as taxable assets, people will soon be able to add them into their retirement accounts as well.

Interest in crypto is also on the rise because of what global central banks are doing. They have changed their money-printing operations into hyperdrive, thereby devaluing their fiat currencies in the process.

Yields on government bonds and savings accounts are in record-low territory. The crypto market adds a completely new asset for yield-seeking investors and a hedge against the loss of value of cash holdings.

The 10-year Treasury’s yield dropped sharply below 1% in early 2020. That’s below the inflation rate, which means investors lose money by owning government bonds. This is one reason why professional money managers are looking for a higher yield alternative.

Cryptocurrencies are in a unique position since they’re not tied to the economy and are an alternative to fiat currencies. There is also a limited supply. No other asset class has the same upside potential.

Real assets, like productive real estate, gold, maybe some art, could do well during times of economic hardship, but probably not nearly as well as cryptocurrencies.

Wall Street is only in the beginning stages of recognizing BTC’s resilience and outperformance. Leaders such as Jamie Dimon are now positioning their companies to take advantage of the coming major financial shift, even if it’s simply to have an alternative to the dollar.

And Wall Street isn’t alone in seeing BTC as a better value than cash. Many corporations are moving some of their cash to BTC.

The crypto train has left the station and is building speed and momentum. It’s not yet too late (but it will be soon) to jump on this train for the opportunity to join those who realize that BTC is a great investment and currency as we head into the third decade of the 21st century.

If you’d like to learn more about cryptocurrencies, crypto exchanges and the state of the crypto market, sign up for a free trial of my weekly Crypto Wealth Protocol newsletter.

Recommended Articles

Options: Why Buy Puts? To Make Money When You Think a Stock Will Fall in Price

Beginning options investors often struggle with the concept of put options. They have no trouble with call options. With calls, beginners usually grasp that you will buy a predetermined number

Bitcoin Zooming Higher Again. Speculation or the Future of Money?

As Bitcoin threatens to break through its record highs set a few years ago, at least some people are likely to get involved in speculating in them again. Many seem

5 Proven Ways to Earn Powerful Side Income

If you want to earn extra money with relative ease, whether it is to save up for retirement or prepare for a well-deserved vacation, one of the best things you


Day Trading Now: Stock Too Expensive? Buy a Slice

The cost to build a diversified stock portfolio is often the highest barrier for new investors. The outlay required to buy a basket stocks is more than the dollars available.

Looking for Better Returns? 5 Ways to Invest in Brazil

Brazil is known for tourist attractions, its natural beauty and soccer. The former Portuguese colony is also a thriving multicultural country — a melting pot not unlike the United States.

Add Some Spice to Your Portfolio with This Consumer Staple Stock

When the vaccine results from Pfizer (PFE) were announced on November 9, it sent the stock market on a wild ride. Sectors that had been underperforming the overall market screamed

Iaccino: Market Volatility Here to Stay

Bob Iaccino, editor of the Stock Think Tank, talks about Amazon's move into prescription drugs and market volatility on Bloomberg News.

Beat the system by understanding both sides of the trade, reward and risk. Get Bob Iaccino's Stock Think Tank newsletter through this special offer.

Are Cannabis Stocks a Good Investment for 2021?

Cannabis and CBD oils are booming industries.  Economies see a massive boost of billions of dollars when these two hit the scene. From recreational to medicinal, these plants offer a

The Benefits and Pitfalls of Trading Options on ETFs

An exchange-traded fund (ETF) is a collection of assets that track specific investment categories. For instance, SPY tracks the S&P 500. ETFs can also track sectors and industries, such as

Options Strategy: Sell Covered Calls on Technology Stocks

Stock prices of publicly traded technology companies have been resilient this year. Many remained unaffected or benefited from the onset of the current crisis. Other sectors seem more exposed to

Looking for Foreign Stocks with Powerful Dividends? Look No More! (VYMI)

Declining yields on investment income products has let investors to hunt for high dividend yielding stocks to boost their income. One product that I have actively used and would like

Frazier: How I Got a 45.2% Gain in Less Than 60 Days

Click Here To Subscribe On A 100% Free-Trial Basis To The Bulletproof Wealth Report!

Hello David Frazier here, editor of the Bulletproof Wealth Report. I told subscribers to our Bulletproof Wealth Report on November 2nd that I expected U.S. stock prices