Goldman Sachs has come out to state that it is high time for people to consider Bitcoin as an asset to invest in. From the look of things, there is so much that Bitcoin has to offer and it would be ideal to give it a shot. Whereas, this is still a new concept to many people, studies by Goldman Sachs show that this is a great digital asset, which you can invest in. The major reason why many people are still skeptical is the fact that Bitcoin does not behave like ordinary assets.
As a matter of fact, if the last few weeks are anything to go by, it would be logical to consider Bitcoin as a risk-on asset. However, the actual truth is that this is a new asset class with its own unique traits. You cannot afford to ignore this new wave of cryptocurrencies. However, even with the nod that Bitcoin has received from Goldman, it is safer to treat it as volatile stocks. There are drastic rises and drops in such stocks and this means that the investment could go either way for you.
A simple analysis of the Bitcoin prices shows that they were as high as over $64,000 in mid-April. However, by the beginning of June, the prices seemed to have been on a downward trend getting to as low as $31,000. In the last few days, there has been some slight recovery in the value of the Bitcoin prices. One of the biggest concerns is the inconsistency of the prices and regulatory measures.
Crypto Concerns from World Governments
Several governments around the world have been raising serious concerns about crypto trading. The Chinese government has in the last few days indicated that it would start crackdowns on crypto trading and Bitcoin mining. This is a move that is aimed at reducing the risk levels. The chairman of the Federal Reserve, Jerome Powell has also assured the citizens that it is still carrying our operations on digital currencies. This affects different crypto coins, including Bitcoin. He emphasized that the intention is to ensure that people have faith in different aspects of the economy.
There are certain measures like operating through Bitcoin System login which are meant to make sure that the trade is safe and efficient. Mr. Powell says that the commitment of the Federal Reserve is to ensure that all people are able to embrace this new innovation and get the maximum benefits. Generally, most people agree that there needs to be a way to have the prices of cryptocurrencies regulated so as to control the financial markets. Failure to put regulatory actions may cause a crisis in the near future.
However, even with the concerns about the regulation of crypto, there are many clients who are keen on investing in Bitcoin. As this is being added to their portfolios, it is creating great exposure to the crypto world and it is just a matter of time before it becomes a huge market. What this means is that there may be a very high demand for coins like Bitcoin and those who will have invested earlier may hit a jackpot.
Learning more about this crypto world is imperative so that you can invest in full knowledge of the benefits as well as the possible risks involved. Cryptocurrency is no longer a foreign topic across the globe and it promises to change the way financial markets operate. There are so many learning curves associated with Bitcoin and you can expect to see the prices in the headlines for a while. All we can do is monitor the markets while trying to learn as much as possible about this new field.