Bitcoin has “a variety of similarities” with gold, and shopper fears of the cryptocurrency being stolen are fading, based on a brand new report from a unit of the bond-rating and funding index agency Normal & Poor’s.
“Issues of bitcoin theft have been rampant a couple of years in the past,” Jim Wiederhold, affiliate director for commodities and actual property for S&P Dow Jones Indices, mentioned in excerpts of the report emailed by a press consultant for the New York-based firm. “As bitcoin turns into extra mainstream, these worries are fading, although lingering know-how and trade counterparts dangers stay.”
S&P joins a rising listing of Wall Road companies to weigh in on bitcoin after costs for the cryptocurrency quadrupled in 2020, producing recent curiosity amongst massive institutional buyers together with BlackRock, the world’s greatest cash supervisor.
Some highlights from the S&P report:
Bitcoin costs have a one-year volatility of 82%, multiples of the 15% seen in gold costs and the 26% volatility proven by the S&P 500 Index of enormous U.S. shares, based on the report.
The report comes as S&P itself is angling to get into the crypto market. The agency introduced final month a partnership with knowledge supplier Lukka to launch crypto indexes in 2021.