As the Bitcoin price rallied over 27% in October with the highest monthly close ever above $13,000, it has brought back the attention of the mainstream media.
In 2020, Bitcoin has been strengthening its status as a store of value and a hedge against inflation and as we start a new bull cycle, banks and media all have started taking a special interest.
The Wall Street Journal first covered MicroStrategy declaring BTC as a reserve asset in its “‘Cash Is Trash,’ So Let’s Bet $425 Million on Bitcoin.”
According to the publication, with yields close to zero, “the stress to take unprecedented dangers with it’s more likely to rise.”
The article doesn’t really put BTC in the limelight as much as WSJ focuses on MicroStrategy. It noted how once hot, in the late 1990s, the company is now barely growing with its managers along with CEO Michael Saylor, a vocal BTC proponent, involved in civil accounting-fraud charges that were settled with the SEC. But this year, things have changed as since betting on Bitcoin, its corporate shares doubled.
But WSJ covered Bitcoin again this weekend with “Bitcoin is back trading near three-year highs,” and outpacing stocks, gold, and other assets this year with its 90% returns. Saylor said,
“The Wall Street Journal is beginning to notice Bitcoin and explore its relationship to the wider capital markets, where U.S. stocks alone are worth nearly $52 trillion.”
The leading cryptocurrency actually has been the best performing asset of the past decade and remains so this year as well.
Interestingly, $1.00 invested in BTC at the first market price would have been worth $18,073,700.00 today, while the same in Gold would be a meager $1.81, noted on-chain analyst Willy Woo.
#Bitcoin is the best performing asset, this year, last 5 years and last 10 years. Even risk-adjusted bitcoin outperforms all other assets, year after year. What’s your reason for not having bitcoin in your investment portfolio?
— PlanB (@100trillionUSD) November 1, 2020
Amidst this, BBC Scotland, a division of the BBC, also noted cryptocurrency as one of the “five alternatives to keeping your savings in the bank.”
The publication noted how in the current environment of low-interest rates, traditional savings accounts aren’t the “most profitable” place to store cash in the long term.
Cryptocurrency described as “completely virtual” money which is “basically a line of code” is one such alternative to traditional savings options.
Compared to the traditional currency which can lose its value, crypto is a viable investment, said Temple Melville of Scotcoin, a non-government project which aims to be an official digital coin in Scotland. He said,
“Governments have recently thrown all the rule books of economics out the window.
The result of that is that there have been trillions of dollars and pounds, euros, yen, you name it, that have been printed.”
While each new fiat currency printed reduces the purchasing power of the currency in existence, there will ever be 21 million Bitcoin, he added.
Other options included gold, stocks and shares, classic cars, and Whisky.