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

6 Exotic Vacation Spots Where a Dollar Goes Farthest

The average cost for an American to go on vacation is just about $1,200. Depending on where you go, that cost might barely cover the airfare. That’s the thing about

4 Safe Ways to Earn Steady Retirement Income

Retirement should be a time to relax and experience the good things of life that you probably missed when you were working full-time. However, to have a truly good time

Restless Leg Syndrome — Is It All in Your Head?

If you’ve ever felt tingling, crawling or tugging sensations in your legs, seemingly for no reason at all, you might have thought you were going crazy. These feelings may keep

11 Money-Burning Impulse Buys You Must Resist

The average American spends over $5,400 every year on unnecessary impulse buys. Think about what you could do with an extra $5,400. Setting aside that amount in a retirement plan

5 Questions to Ask Before You Take Money from a 401(k)

Sometimes even the most financially prudent individuals may go through an unforeseen emergency that forces them to consider making an early retirement withdrawal. However, while in your moment of difficulty

10 Ways to Spend and Live Well With No Cash

Living a healthy lifestyle isn’t always easy, and it can weigh heavily on the wallet. Organic food can cost a pretty penny and holistic healthcare models are often paid out

Save Hundreds by Being Your Own Pest Control Service

The average cost of a pest control visit can be anywhere between $150 to about $1,500, depending on the severity of the problem. Most new homeowners don’t appreciate that when

How to Protect Your 401(k) in the Event of a Market Crash

It's normal for investors, especially those close to retirement age, to worry about fluctuations in the market and how it will affect their 401(k) plans. And while there's no way

Would You Eat Ugly Carrots to Save Money?

“Ugly produce” a is term for aesthetically unpleasing food that usually goes unsold in lieu of more cosmetically appetizing fruits and vegetables. Bruised, blemished, or misshapen apples, double-headed carrots, or

credit score boost

Credit Score Boost: How Your Behavior Affects Your Credit

A credit score is a lot like your personal economic statement. Getting a credit score boost improves your money life immediately. Any time you apply for a loan, a mortgage,

Retiring? Here’s 4 Cities Where You Can Live on $1,500 Monthly

Retirement should technically be a wondrous time of life where you stop living to work and start working on living. However, retirement in real life is nothing like the pop-culture

8 Things to Do the Moment You Start Feeling Sick

Some days, you just know something’s got you. When you feel that heaviness in your head, an aching in your joints or scratching in the back of your throat, it’s