On Monday, a wholly owned subsidiary of U.S. bank Wells Fargo and registered investment adviser Wells Fargo Investment Institute announced an investment strategy with a page dedicated to the crypto bitcoin asset. The organisation’s contributing author and head of real asset strategy, John LaForge, compared crypto investment with “the early days of the gold rush of the 1850s.”
This week John LaForge of the American multinational financial services firm Wells Fargo published an investment strategy for the bank’s subsidiary, the Wells Fargo Investment Institute.
The guide discusses many traditional investments and trends taking place in the world of finance, but the seven-page update also commits a whole page to bitcoin (BTC) and the crypto economy in general. “[Bitcoin], ”LaForge said is 2020’s” best and most volatile performance asset “compared to the equity and other investment vehicles discussed in the strategy update.
“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. Bitcoin, the largest cryptocurrency, is up 170% this year – on top of the 90% gains it received in 2019, ”LaForge’s report emphasizes. Despite the crypto hype, neither LaForge nor the Wells Fargo Investment Institute are rocking. The author added:
If you feel left out of the craziness, don’t. Most investors have heard of cryptocurrencies, but few have ever bought or used one.
The author admits that the bitcoin chart (BTC) against the US dollar states that “bitcoin has indeed outperformed gold and the S&P 500 Index over the last three years.” But the LaForge report insists that crypto bidders have a “volatile journey” to “suffer to get there.”
“Investing cryptocurrency today is a bit like living in the early days of the gold rush of the 1850s, which involved more speculation than investing,” notes Wells Fargo’s head of real asset strategy. Still, the banking adviser can’t completely dismiss the crypto economy, and says that “cryptocurrencies could one day become a worthy investment.” For example, LaForge underlines that they have “risen from nothing to $ 560 billion in market capitalization in the last 12 years.”
A Wells Fargo analyst recognizes that digital assets like bitcoin (BTC) are here to stay. “Pads don’t usually last 12 years. There are good reasons for this, ”LaForge admits. Furthermore, a Wells Fargo Investment Foundation contributor said the bank will publish more on the “digital asset space” including its “upside and downside,” the author concluded.
What do you think of the Wells Fargo Investment Institute’s recent report on bitcoin investing? Let us know what you think of this topic in the comments section below.
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