Due to the global recession and market turmoil around the world, many investors are intertested crypto currency as an alternative investment, Due to coronavirus and according to expert opinion, big investors are interested in bitcoin and other cryptocurrency as a good opportunity to invest for future . There are three main reasons why demand of cryptocurrency can increase as a attractive investment.
After Coronavirus Crisis, High Institutional Demand Expected
The IMF calling it the worst recession since the Great Depression .The covid-19 pandemic has led to an unprecedented economic crisis. Most of the Companies are missing their earnings estimates and many traditional investments have taken a hit across the board. After such economic crisis many of the investor scrambling to find safe haven assets and more people are now thinking whether cryptocurrencies, such as bitcoin,ETH,BCH,XRP etc , are a good investment.
1. Firstly, he said that after the coronavirus crisis the stock market may lose its due to decreased demand for many companies’ products,services, this may resulting in long-term declines in corporate profits of those companies.
2. Expert think that there is still very little correlation between them and traditional investments Due to this they analyst asserted that cryptocurrencies are attractive investment. During the downfall in the market or in panic , of course, all assets were sold, both gold and bitcoins and many more assets were sold, but they picked up thereafter …
As a result, there is more room to incorporate assets that will have little correlation with the uncertain future society.
3. Compared to other asset types one more reason why investors will be more interested in cryptocurrencies is that “among such uncorrelated assets, Most of the various or we called big investors are not yet incorporated is cryptocurrency yet.
Bitcoin is Recommend in Portfolios of Financial Experts
Some Financial Experts were already recommending some exposure to cryptocurrencies within investment portfolios and we see there is big subsequent economic turmoil due to spread of coronavirus all around the world this may big impact in traditional investment opportunity methods.
Cryptocurrency trading participation by institutional investors is now significant. The crypto market continues to mature, Some Predictors says that “Bonds may lose their ability to hedge equity portfolios over the next several years.
I wish I have much money to invest in this