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Big banks JPMorgan and Goldman Sachs discourage their clients from investing in cryptocurrencies, said Adam Pokornitsky, a partner at digital asset management company Digital Asset Investment Management.
I have a customer who was ready to buy. #bitcoin and after talking to his advisors at JPM & GS he said he is no longer interested. I asked what they said and instead of answering, they asked me to explain in a sentence what are the benefits of buying BTC now in terms of proven results.
– Adam Pokornicky (@callmethebear) April 30, 2020
One of Pokornitsky’s clients was going to buy bitcoins, but after speaking with consultants at JPMorgan and Goldman Sachs, he stated that he was no longer interested in buying.
The client did not tell Pokornitsky what exactly he had heard from the representatives of financial giants, but asked him to list the benefits of buying bitcoin now.
Pokornitsky pointed out that the purchase and storage of bitcoin demonstrated profitability for 3,853 days out of 4,134 days, that is, for more than 93% of the time. Furthermore, the value of the first cryptocurrency is not pegged to the dollar, and its price is set solely based on supply and demand.
“Based on modern portfolio theory and considering an optimal portfolio, any portfolio with many assets, including at least 1-10% of bitcoin, showed better risk-adjusted absolute return than portfolios without it.” He wrote.
Remember that JPMorgan and Goldman Sachs have long been exploring the possibilities of working in the crypto space. Past last year reportedwho intends to “move more than ever” when working with digital assets.
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