16.04.202107:47 Forex Analysis & Reviews: Bank of America: 74% of professional investors see bitcoin and other cryptocurrencies as a bubble

It is impossible to deny the fact that Bitcoin is gaining more and more popularity both among ordinary people and investors. But, as many studies say, most investors are still not ready to deal with bitcoin. For example, a survey conducted by the Bank of America of 200 professional investors who have more than $500 billion under their management showed that about 74% consider bitcoin and other cryptocurrencies to be a normal financial "bubble". About 16% do not think so, and 10% are undecided about the answer at all. What does this mean? First, bitcoin is still far from the most popular tool for investing among large private investors and institutions. Many people are not ready to invest in the "digital gold" for the same reasons that we have listed many times: cryptocurrency is too volatile and risky. And secondly, it suggests that bitcoin has a huge growth potential. Recall that the last surge in the growth of bitcoin occurred in 2020, when the whole world was covered with a crisis and a pandemic. That is, it is precisely due to the influx of institutional and large private investors who, in a panic, invested their money in something that could save them from inflation and the depreciation of other assets, that bitcoin showed such a strong growth. And if this is about 10-15% of the total number of potential investors that entered the cryptocurrency market, bitcoin can really become more expensive at least up to $1 million per coin. The remaining 85-90% may also eventually become interested in bitcoin. In addition, 33% of investors surveyed consider shares of high-tech companies to be the most popular asset, while 27% believe that the most popular asset is cryptocurrency. In general, even if the correction of bitcoin begins in the near future, as many experts say, everything is still going to the fact that bitcoin will continue to rise in price. And it really can be numbers much higher than $100,000 per coin.

It was also estimated that it took bitcoin just 12 years to reach a capitalization of $1 trillion. It took Amazon 24 years to reach that figure, Apple 42 years, and Microsoft 44 years. Of course, this is not quite a correct comparison, since a cryptocurrency that was originally created as a currency is not the same as a company and/or its shares. However, the difference is quite interesting.

At the same time, the head of the asset management company BlackRock, which manages more than $8 trillion, believes that bitcoin will never be a substitute for fiat money. Larry Fink said in an interview with CNBC that despite all the positive news of recent times (Coinbase listing on NASDAQ, for example), he does not see an increase in interest in bitcoin among institutional investors. "We're studying it. We make money on it, but I'm not here to tell you that we're seeing broad-based interest by institutions worldwide," he said.