Bitcoin will be the most promising type of asset in 2020, according to a survey conducted by Chainanalysis among financial experts.
Bitcoin better than S&P 500 in 2020?
The survey was attended by 350 people professionally involved in financial matters, such as heads of banks, credit companies, financial service providers, as well as representatives of regulatory institutions. Nearly half of them believe that Bitcoin will achieve better results next year than the companies on the S&P 500 index, despite short-term price fluctuations.
Financial investors still cautious about BTC
48% of those surveyed by Chainanalysis say that BTC will outperform all other asset classes in 2020. Roughly one in three believes that the S&P 500 index will grow the most, 13 % believe in bond growth and 5 % believe in real estate growth. Co-founder of Chainanalysis Michael Gronager argues that important financial players understand Bitcoin’s investment potential well, but are still afraid to take excessive risks. – There is a large group of financial specialists who are aware of the great chance that crypto-currency currently represents, but they do not decide to enter this market because they perceive it to be risky,” explains Gronager. – Of course, there is also a part that does not fully know what opportunities this market offers them.
The Chainanalysis survey shows that financial investors fear a particularly complex legal environment and therefore do not want to enter the cryptocurrencies market . 40% of those asked replied that it was precisely for fear of illegal transactions that they had not yet seriously invested in the crypto market. 44% say that their interest in crypto-currency would have increased if customers had requested it and 20% say that it would secure their future assets. Interestingly, as many as 70 % of those surveyed expect the new global digital currency to emerge within up to 10 years. One in three believes that it will be created by the US, and about one in five believes that it will be created by China.
A good year for Bitcoin
2019 is a very successful year for Bitcoin. This cryptocurrency started with a price of around $4,000, while at the moment it is around $8,800. Bitcoin has therefore achieved much better results than the stock market indices in recent months. However, it should also be remembered that in the past there were years when it was much worse than other assets. Meanwhile, the S&P 500 index was at 2,500 points at the beginning of the year and recently exceeded 3,000. Some people fear that this may cause a large sale of shares. It is not known, however, what would happen to BTC in the event of a significant downturn in the stock market.
BTC still under pressure from sellers
Bitcoin’s quotations have been recently influenced by strong pressure from sellers, and as a result the exchange rate is below the previously beaten USD 9,000 level. With a further decline, the exchange rate could be up to 8,000, and locally even lower. If, however, there were a rebound and a return to $9,000, a psychological limit of $10,000 could appear on the horizon.