Bitcoin News Today – October 11

bitcoin price analysis
  • Bitcoin (BTC) Has the Potential to Become Digital Gold – VanEck
  • VanEck Was an Early Gold Bull

Bitcoin News Today – VanEck recently released a report pitched at institutional investors saying that Bitcoin (BTC) has monetary value and it can improve portfolio upside. VanEck is the first investment manager in the United States to bet on gold before it broke from the gold standard. The title of the report is “The investment Case for Bitcoin” and it was released by the New York-based company on Wednesday.

The report details a very long list of reasons why Bitcoin (BTC) deserves a place in institutional portfolios. According to the report, the digital currency boosts the overall performance and minimizes the risk-reward profile of portfolios.

Bitcoin (BTC) Has the Potential to Become Digital Gold – VanEck

Bitcoin (BTC) enthusiasts will recognize many of the thesis released by VanEck, asserting that Bitcoin has the potential to become digital gold. The report of the firm also points out the scarcity-driven growth of Bitcoin, impressive historical performance, network transfer value, and its non-correlation with traditional assets. The report is a rehash of many well-formed hypotheses that have been in circulation for years in the digital currency space.

However, the findings of VanEck may carry weight with institutional investors in light with the success of the company as an early gold bull. The firm currently has about $40 billion under management spread across 57 exchange-traded funds.

VanEck Was an Early Gold Bull

The CEO of VanEck – Jan Van Eck – said that his father saw tremendous success after selling 80% of the stock positions of the company to launch the first gold equity in the US. This was a huge unorthodox move in 1968 due to the fact that the price of gold was fixed to $35/ounce to serve as a peg for the USD under the gold standard.

When President Nixon broke the peg of the dollar in 1971, the price of gold exploded in the open market. They bought a huge quantity of it as safe haven against inflation. Due to the foresight of his father, he said that the flagship gold fund of VanEck became one of the top-performing funds of the day. Van Eck believes that the opportunity lies in BTC this time around. Last year, Van Eck said:

Even now we are looking at digital assets and Bitcoin (BTC), and I said that gold was kind of the Bitcoin of its time – when dad started the gold fund, people thought (I’m sure they thought) he was nuts. And so I think that is a useful analogy both ways just like most people think that Bitcoin’s kind of crazy.”

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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