Bitcoin: best-performing ‘asset class’ this year; Bank of America bullish on DeFi
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As Bitcoin moves optimistically into “Uptober“, data confirms what some probably already suspected: BTC is the best-performing “asset class” of 2021 so far – on a global scale.
At the time of writing, actually, Bitcoin has just cracked the US$50K mark for the first time since early September, surpassing Facebook’s market value in the process.
According to data from the New York Digital Investment Group (NYDIG), the original cryptocurrency has beaten stocks and commodities worldwide with year-to-date returns just shy of 50 per cent.
And this is despite a typically volatile, roller coaster of a year, with stunning peaks and gut-churning, 60 per cent plummets along the way. No one said it was easy being a Bitcoin and crypto HODLer. (Actually, maybe some people said that.)
— Bitcoin (@Bitcoin) October 4, 2021
Scanning the other top performers, Bitcoin has a 13 per cent lead on its nearest asset-class rival, commodities, and 17 per cent on US micro cap stocks.
As has been well documented (although not by Peter Schiff), it hasn’t been the greatest year for gold and precious metals. That said, the yellow metal is currently enjoying a slightly better time of things this week.
What does it mean to go “all-in” on gold? Is gold adding thousands of new software engineers each month? Is gold adding new features, new apps, and new ecosystems? Is there an underlying gold network that allows us to instantly move value anywhere in the world? #Bitcoin
— Rich Rogers (@RichRogers_) October 4, 2021
The Bank of America Corporation (BoA), the second-largest bank by assets in the US, has published a research report with a bullish long-term view of crypto.
The banking behemoth launched a crypto research team back in early July and has just published its first findings.
With reference to smart-contract platforms and decentralised apps, the report states that “we are only in the first innings of a major change in applications across most industries that will take place over the next 30 years.”
— Michael Saylor⚡️ (@michael_saylor) October 5, 2021
The BoA report’s key takeaways:
• With a market cap cracking US$2 trillion, crypto is sector that’s “too large to ignore” with “so much more” to it than Bitcoin.
• Venture capital in the sector has sharply increased in 2021. The US$17 billion invested in the first half of 2021 more than tripled all of 2020’s VC crypto investing.
• As of June 2021, an estimated 221 million users have traded cryptocurrencies or used a blockchain application, compared with 66 million till May 2020.
• Digital assets that enable a platform to be built, “like the Apple iPhone did for applications”, are gaining the most value – e.g. Ethereum and Cardano.
• Despite regulatory scrutiny in the US, BoA is “optimistic” about the long-term future of the fast-growing decentralised finance (DeFi) sector.
• NFT sales increased to US$3bn+ in August 2021, and has been a “surprise for all” ), up from US$250 million in 2020 on the back of corporate, celebrity and individual demand.
• The non-fungible token sector, however, carries “heightened risks”, which need to be fully understood before NFTs can “achieve true adoption.