Bitcoin has “plenty of similarities” with gold, and client fears of the cryptocurrency being stolen are fading, in accordance with a brand new report from a unit of the bond-rating and investment-index agency Customary & Poor’s.
“Issues of bitcoin theft had been rampant just a few years in the past,” Jim Wiederhold, affiliate director for commodities and actual property for S&P Dow Jones Indices, stated in excerpts of the report emailed by a press consultant for the New York-based firm. “As Bitcoin turns into extra mainstream, these worries are fading, although lingering expertise and trade counterparts dangers stay.”
S&P joins a rising record of Wall Road corporations to weigh in on bitcoin after costs for the cryptocurrency quadrupled in 2020, producing contemporary curiosity amongst massive institutional buyers together with BlackRock, the world’s greatest cash supervisor.
Some highlights from the S&P report:
Bitcoin costs have a one-year volatility of 82%, multiples of the 15% seen in gold costs, and the 26% volatility proven by the S&P 500 Index of huge U.S. shares, in accordance with the report.
The report comes as S&P itself is angling to get into the crypto market. The agency introduced final month a partnership with information supplier Lukka to launch crypto indexes in 2021.