On Monday, the 100% subsidiary of the US bank Wells Fargo and registered investment advisor the Wells Fargo Investment Institute published an investment strategy with a page devoted to the crypto-asset bitcoin. The institute’s contributing author and head of Global Asset Allocation Strategy, Tracie McMillion, compared investing in cryptocurrencies to the “early days of the gold rush in 1850”.
This week, Tracie McMillion of American multinational financial services company Wells Fargo published an editorial on investment strategies for the bank’s subsidiary, the Wells Fargo Investment Institute.
The guide discusses some of the traditional investments and trends taking place in the financial world, but the seven-page update also captures an entire page bitcoin (BTC) and the crypto-economy in general. “[Bitcoin], ”Said McMillion that these are“ the best-performing and most volatile ”assets of 2020 compared to the stocks and other investment vehicles discussed in the strategy update.
“2020 has been a wild and crazy year, so it’s only fitting that 2020’s top-performing asset group has the craziest-sounding name – cryptocurrencies. Bitcoin, the largest cryptocurrency, is up 170% this year – that’s on top of the 90% profit it had in 2019, ”emphasizes the McMillion report. Despite the crypto hype, McMillion and the Wells Fargo Investment Institute are not affected. The author adds:
If you feel left out by the craziness, don’t. Most investors have heard of cryptocurrencies, but few have ever bought or used one.
The author admits that the bitcoin (BTC) graph against the US dollar indicates that “bitcoin has indeed outperformed gold and the S&P 500 Index over the past three years.” But the McMillion report emphasizes that cryptocurrency advocates had a “fleeting journey” to “persevere to get there”.
“Investing in cryptocurrency is a bit like life in the early days of the gold rush of 1850, which involved more speculation than investment,” notes the Wells Fargo Head of Global Asset Allocation Strategy. Nevertheless, the bank adviser can use the crypto-economy, saying that “cryptocurrencies could one day become investment-worthy.” For example, McMillion underlines that they “have gone from literally nothing to $ 560 billion in market cap over the past 12 years.”
Wells Fargo’s analyst acknowledges that digital assets such as bitcoin (BTC) are here to stay. “Fads don’t usually last 12 years. There are good reasons for this, ”admits McMillion. Furthermore, the Wells Fargo Investment Institute employee said the bank will publish more on the “digital asset space,” including the “pros and cons,” the author concluded.
What do you think of the recent Wells Fargo Investment Institute report on bitcoin investing? Let us know what you think about this topic in the comments below.
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