Institutional FOMO: Is Australia’s Largest Investment Manager Eyeing Bitcoin[BTC]?

Prashant Jha Bitcoin November 23, 2020

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Institutional FOMO: Is Australia’s Largest Investment Manager Eyeing Bitcoin[BTC]?

Bitcoin entered into the third-week of its bullish price rally with its price currently consolidating above $18,500. The top cryptocurrency has managed to hold ground despite two flash crashes of over $1,000. Many believe that bitcoin’s ongoing bull run is way different than the 2017 one as the king coin steadily nears its all-time high. Another formidable factor in Bitcoin’s favor is the growing acceptance among mainstream hedge funds and fund management companies.

Many financial pundits over the past couple of weeks have come forward to declare that bitcoin is no more a speculative asset rather they see it replacing gold as a true store of value in the future. The CIO of the world’s largest asset management firm BlackRock reaffirmed that bitcoin is here to stay and has the technical superiority to replace gold. Grayscale, the largest crypto fund manager which has been on a bitcoin buying spree revealed that their clients see Bitcoin as an inflation hedge and a store of value.

Pendal Group Head of Bonds Says Government Bonds Could Soon be a Dead Asset Class

Vimal Gor,  Pendal Group’s head of bond, income, and defensive strategies has come out as a great advocate for bitcoins bonds. During an Interview with Financial Review, Gor said government bonds are a dying asset class and bitcoin is entering the realm of mainstream.

“COVID just accelerated the large structural trends that were already in place. The first and main one was falling official interest rates and bond yields. With large scale central bank QE programs in place, bond yields are going to stay low for a very long time.”

“We think ultimately that government bonds will turn into a dead asset class, so we now have to imagine what it will be like for other assets classes when bonds are no longer relevant to hold in a portfolio.”

Mr. Gor sees Bitcoin as a social construct and superior to gold which would lead to an evolution in our financial system. Given it is finite and constantly decreasing in availability makes it more superior to gold in terms of a store of value. bitcoin being a decentralized commodity means any centralized authority has no control over its functionary. Gor concluded,

“Bitcoin is a cockroach that exists. They can’t ban it out of existence.”

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