Director of Research Ria Bhutoria writes that the crypto’s current market has a high growth potential
Fidelity Digital Assets published a Bitcoin report saying that current market capitalization “is a drop in the bucket compared with markets bitcoin could disrupt.”
The BTC fundamentally is better positioned to weather “economic headwinds”, that other asset classes are likely to experience, states the report.
Director of Research Ria Bhutoria called BTC potentially useful for investors, who seek to add to their portfolios bitcoin’s “asymmetric upside” and its lack of historical correlation to other assets.
“In a world where benchmark interest rates globally are near, at, or below zero, the opportunity cost of not allocating to bitcoin is higher,” details the report.
Bhutoria forecast that a 1% flow of $50.3 trillion (in 2018) bond market to bitcoin is incremental to $500 billion in bitcoin’s market cap while the potential could well exceed $1 trillion.
The involvement of traditional companies at the moment is the highest it has ever been. MicroStrategy, Nasdaq traded provider of Business Intelligence and mobile software, and Jack Dorsey’s Square both recently made sizeable investments, as part of their hedging strategy. And the trend is likely to continue, as bitcoin becomes more intertwined with traditional markets.