The Truth Is Bloomberg's New Commodity Outlook Is Bullish On Bitcoin
Why is Bloomberg making a strong case for Bitcoin in the light of central bank easing? Know more about this fact.
The Bullish Bitcoin
Here comes what is Bloomberg’s commodity outlook for June 2020 that has been released and it shows some support for Bitcoin. Hereafter the opinion of Bloomberg on future commodity prices is that they are sure to stay on a downward path as the exception of gold and Bitcoin. It was hence granted that bitcoin is not a commodity but what is still included in the report.
This is where the report is in stark contrast to Goldman Sachs which is a recent take on Bitcoin when the company noted in an investor presentation that it is of course not a suitable investment at all as the Goldman went so far as to comment that bitcoin and other cryptos lack scarcity, cash flow, and are not a hedge against inflation.
Hereafter there was this Bloomberg report that it could not have been more opposite as it is said that from amongst the few assets up in this tumultuous year, gold, as well as Bitcoin, are building foundations for further price appreciation in their view.
Thereafter Bloomberg explained that its quite logical to expect gold to outperform most assets in an environment of unparalleled central bank easing and they foresee the precious metal maintaining the upper hand in most scenarios. It is here that Bloomberg cites economic easing from central banks as a good reason to use gold as a hedge.
Bloomberg’s View On Crypto Trading
It is then observed that Bitcoin has many similarities to gold were most notably it’s the scarcity. Hence the commodities that have scarcity have historically been very useful as a hedge against inflation and economic easing as for the same reasons Bloomberg has a positive outlook for gold as it has hopes of a bright 2020 for bitcoin as well.
Thereafter Goldman on the other hand had stated that bitcoin does not have scarcity as forks of bitcoins code create more of Bitcoin. This is while it is an interesting point of view, it seems rather misinformed as forks of Bitcoin’s blockchain are now entirely their systems with different methods for scalability and different coins that are not to be confused with Bitcoin.
Here the Bloomberg report stated that the metal and the crypto remain the top candidates to advance in 2020 with added rally fuel from Covid-19.
Thereby Bloomberg continued that this sentiment as also that which was even mentioned that Bitcoin is a resting bull with reports making the case for both gold and bitcoin as a tool against inflation whereas as assets that will appreciate, should the stock market rollover.
Consequently, Bloomberg said that for Bitcoin to stop appreciating thereby it would need some sort of significant event to destroy confidence in the integrity of its protocol. thereby one scenario is that it could seriously weaken investor confidence which would be a double-spend attack as this is a scenario where one entity controls the majority of the network which is 51% or more and therefore can take control of it while spending that same bitcoin more than once. Thereby it was given that bitcoin’s enormous and growing computing power seems to be highly unlikely as the cost to achieve that is not insignificant
How does Bitcoin Polarize Wall Street?
There are opinions on bitcoin’s future a value seeming to be to both extremes with some saying that it holds no real value and others like Bloomberg are asserting that will appreciate whereas this highlights the two camps of thought regarding cryptocurrency.
Henceforth with the bitcoin’s beginning, it has often been deemed as worthless or some sort of scam whereby Warren Buffet famously quoted that Bitcoin was probably rat poison squared and that it was a mirage basically.
It was then portrayed that while bitcoin has been portrayed as a scam or worthless by members of the finance industry, the media has also declared its failure many times over the years. Therefore, one site that compiles all of the times Bitcoin has been declared dead by the media listing out 380 instances with the latest being March 4th, 2020.
The fact is that still bitcoin continues forward and has seemingly turned the opinions of some in the finance industry towards the bullish side whereas the companies like Bloomberg expects appreciation as well as other new companies founded by industry insiders like Bakkt and Grayscale, rising out of a new industry dedicated to cryptocurrency