The sudden uprise of Bitcoin has got the brokers confused on Wall Street. The relationship between the crypto traders and Wall Street people has always been that of love and hate. If you have opened the link to the article, I am sure you keep a keen watch on the stock market.
Bitcoins have been creating a lot of buzz in the stock market of Wall Street in New York. People are turning more towards Bitcoins and investing fewer stocks.
When Bitcoin was first introduced, the price of a Bitcoin was $0.0008, and now it has hit the all-time high of a staggering $42,000. Bitcoins price will further soar in the coming days as the financial experts have already predicted that by the end of 2021, the value of Bitcoins is going to cross $50k.
Why Are People Investing More in Bitcoins Than in Stocks?
As you know, digital currencies are very volatile, and Bitcoin is no exception. Then you must be wondering then how come people more in Bitcoins and less in stocks.
Let us be honest; people working at Wall Street have always seen institutional crypto investors as their enemies as they have taken their jobs away.
According to Digital Currency Group reports, people working at Wall Street in New York have been purchasing Bitcoins in large quantities. This purchase in bundles has increased the prices of Bitcoins by a lot. The bankers want profits from both Wall Street and the crypto industry.
The COVID-19 pandemic has undoubtedly further made matters a lot worse. The COVID-19 lockdown has already diminished the value of dollars, especially the continuous stimulus packages announced by the Government.
The Stimulus packages increased the circulation of fiat currencies, which has created inflation; as a result, prices of goods and services are on the rise, and the value of dollars is lowering.
This is why people are investing in cryptocurrencies more than in fiat currencies. If you want to take a leap and invest, visit Bitcoin Pro App to know more.
What Is Wall Street Saying About Bitcoin’s Price Hike?
At a recent press conference organized by the New York Times, the CEO and co-founder of JP Morgan Chase, Jamie Dimon, said that he was a true believer in blockchain technology.
But the funny thing was back in 2017; he associated words like ‘fraud’ with Bitcoins and other cryptocurrencies. He further went on to say that Bitcoin needs some form of regulation; otherwise, the illegal activities using Bitcoins will increase.
Another prominent billionaire Ray Dalio accepted that he might have been wrong about Bitcoins and that he might have been missing something about Bitcoins. Ray Dalio made these comments when the prices of Bitcoins started rising after it went down amid the COVID-19 pandemic.
He further went on to say that he still does not support Bitcoins as a medium of exchange, only because of its high volatility rate. In the words of Ray Dalio, Bitcoin was not a good source of Investment as well.
Jeffery Gundlach of DoubleLine Capital has said that Bitcoins had made him an honest man in 2020. He also admitted the fact people are investing more in Bitcoins because of the rising inflation.
Multi-billionaire Nigel Green, the CEO of Devere Group, which is worth 12 million USD, has stated that the COVID-19 pandemic has turned cryptocurrencies into a safe haven asset. He further added that people are investing in Bitcoins to escape the turbulence that the novel coronavirus pandemic has created.
As you can see, there is a love-hate relationship between wall street and crypto investors. Some people have nice things to say for Bitcoins, while others associate words like ‘fraud’ and view cryptos in a very bad light. As a Bitcoin investor, I would say it’s just a matter of perspective.