Multinational financial giant Wells Fargo says Bitcoin’s 12-year history and performance as the best performing asset of 2020 proves the leading cryptocurrency is not a fad.
After a year that witnessed Bitcoin plummet to $4,000 only to skyrocket to a 2020 high of $19,845, the San Francisco-based banking titan says investors have had to endure a roller coaster ride to earn a return on their investment.
“If you feel left out of the gains, don’t. The chart highlights that bitcoin has indeed outperformed gold and the S&P 500 Index over the last three years, but look at the volatile journey bitcoin investors had to endure to get there.”
Although Wells Fargo believes Bitcoin is likely here to stay, they say the market remains highly speculative.
“Cryptocurrency investing today is a bit like living in the early days of the 1850’s gold rush, which involved more speculating than investing… Over the past 12 years, [cryptocurrencies] have risen from literally nothing to $560 billion in market capitalization. Fads don’t typically last 12 years”
In the long run, the report notes BTC could prove itself to be a legitimate long-term investment, and the firm plans to pay much closer attention to the digital asset space at large next year.
“Cryptocurrencies could become investment-worthy one day, though… There are good reasons for this – reasons that every investor should hear. As we roll into 2021, we’ll be discussing the digital asset space more – its upside and downside.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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