Financial experts back bitcoin to outperform the S&P 500 in 2020
Survey of financial experts concludes 2020 will be a strong year for bitcoin
A poll of over 350 financial professionals undertaken by blockchain analysis company Chainalysis, has revealed that over half of them are backing bitcoin (BTC) to outperform the S&P 500 stock index in 2020.
Of the 350 experts, which includes executives from banks, credit unions, financial services providers, and regulatory agencies, 168 (48 per cent) see bitcoin outpacing other indices. Around a third think that the S&P will take the lead, while 13 per cent favour bonds and 5 per cent real estate.
“Many finance professionals understand that cryptocurrency presents a massive opportunity, yet institutions are hesitant to enter the market due to perceived risk and some don’t even realise the exposure that they already have to cryptocurrency,” said Michael Gronager, co-founder and CEO at Chainalysis.
The view reflects 2019’s performance in which bitcoin raced ahead of stock indexes moving from the $4,000 range to current levels around $8,800. It should be noted though that this was coming off the back of a turbulent 2018 where bitcoin finished the year down 70 per cent.
It has however also been a strong year for the S&P 500 which started 2019 around 2,500 points and has climbed to above 3,000 points.
Other findings from the survey included concerns about illegal transactions in the crypto arena with more than 40 per cent of respondents citing this as a reason why they haven’t made bigger forays into the altcoin space. Also 44 per cent of respondents acknowledged that they would be more interested in digital coins, if their clients demanded it.
Chainalysis discovered that one of the reasons for some analysts’ reticence in backing bitcoin, and other cryptocurrencies, is a belief that a new, global digital currency will emerge in the next 5-10 years. Over 70 per cent of respondents think this is likely to occur with a majority believing that it will be the US, not China, behind the initiative.
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