Financial services giant Wells Fargo called bitcoin a best-performing and most volatile asset this year, comparing cryptocurrency to the 19th-century gold rush.
In a personal investment note issued on December 7, Wells Fargo updated clients on the current landscape of various markets, including cryptocurrency. The banking giant called bitcoin 2020 is the best performing and most volatile asset.
The report reads,
2020 has been a wild and crazy year, so it’s only fitting that the best performing group of assets in 2020 has the craziest sounding name – cryptocurrencies.
The report highlights a 170 per cent price increase by bitcoin so far, despite the sharp crash to less than $ 4k in March, in addition to BTC’s 90 per cent earnings throughout 2019.
According to Wells Fargo, most retail investors may have heard of cryptocurrencies but few have ever bought or used one. The banking giant claimed that crypto-assets are attracting a lot of attention but “not necessarily a lot of investment money,” highlighting the industry’s $ 560 billion market capitalization.
The report continues,
Cryptocurrencies could one day become worthy of an investment, though. Over the past 12 years, they have risen from literally nothing to $ 560 billion in market capitalization. Pads do not usually last 12 years. There are good reasons for this – reasons that all investors should hear.
Wells Fargo compared the current state of cryptocurrency investing with the early days of the gold rush of the 1850s, which meant “more speculation than investment.”
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