{"id":128994,"date":"2020-12-08T23:40:00","date_gmt":"2020-12-08T20:40:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/wells-fargo-report-labels-bitcoin-as-speculative-investment\/"},"modified":"2020-12-08T23:40:00","modified_gmt":"2020-12-08T20:40:00","slug":"wells-fargo-report-labels-bitcoin-as-speculative-investment","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/wells-fargo-report-labels-bitcoin-as-speculative-investment\/","title":{"rendered":"# Wells Fargo report labels Bitcoin as speculative investment"},"content":{"rendered":"

“# Wells Fargo report labels Bitcoin as speculative investment <\/strong>”
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San Francisco-based bank Wells Fargo has released a report identifying Bitcoin as the best performing asset of 2020, while also highlighting the coin\u2019s volatility for investors.<\/p>\n

In an investment strategy report released<\/a> yesterday, the banking giant noted that Bitcoin (BTC) is up 170% this year and outperformed both gold and the S&P 500 Index. However, Wells Fargo seemingly understated the role cryptocurrencies are currently playing in the financial market, saying \u201cthey attract lots of attention, but not necessarily lots of investment money.\u201d<\/p>\n

\u201cCryptocurrency investing today is a bit like living in the early days of the 1850\u2019s gold rush, which involved more speculating than investing,\u201d said the report. <\/p>\n

Wells Fargo noted that crypto assets may be worth investing in \u201cone day\u201d and added the bank would be \u201cdiscussing the digital asset space more\u201d going into next year. Though Wells Fargo said that crypto\u2019s market capitalization had grown to more than $560 billion, it called investing in BTC a \u201cvolatile journey.\u201d<\/p>\n

According to data from AssetDash, Bitcoin\u2019s market capitalization sits<\/a> at roughly $350 billion; almost trip<\/a>le Wells Fargo\u2019s $120 billion at the time of publication. Some estimates from two weeks ago even put the crypto asset\u2019s market cap higher than that of banking giant JPMorgan. Wells Fargo noted that the market cap of the entire crypto market is now roughly 25% of all of the S&P 500. <\/p>\n

The report represents a gradual change in the financial institution\u2019s stance on crypto since 2018, when the bank banned its customers from making crypto purchases using Wells Fargo credit cards. Though the report refers to the \u201ccraziness\u201d of the crypto market, it also mentions that cryptocurrencies are likely to stick around, saying “Fads don\u2019t typically last 12 years.\u201d<\/p>\n