Key Takeaways
- Bitcoin ranks as the most purchased and sought after virtual asset in the entire world.
- An erstwhile President of the New York Stock Exchange (NYSE) suggest that it should be added to any portfolio.
Bitcoin ranks as the most purchased and sought after virtual asset in the entire world. An erstwhile President of the New York Stock Exchange (NYSE) suggests that it should be added to any portfolio. In a CNBC Squawk Box interview, Thomas Farley, a former head of the New York Stock Exchange, stated that he thinks Bitcoin belongs in every portfolio.
Bitcoin Should Added To Any Portfolio
The most popular cryptocurrency in the world, Bitcoin, has seen tremendous acceptance in recent years. Farley, Far Point Acquisition Corp's current CEO, said:
"When Bitcoin reached $60,000, several institutions stood by the sidelines and said, "Boy, we'd want to invest. It would cost $60,000 to deploy 1% to 3% of our assets, such as pension money. They've done their due homework, but it feels toppy and there's a little mania. Their investment committees have met with them. It therefore didn't surprise me when some of those institutions entered the market for the first time to purchase Bitcoin for their portfolios as it dropped to $17,000."
One of the reasons why some organizations are cautious about engaging in bitcoin is its volatility, Farley said as he further made these comments:
"Exactly what has happened, in my opinion, is a combination of some astute Bitcoin whales who have been in it for 10 years and then fairly soon, some of those institutions moving in. Bitcoin is up 40%. It doesn't follow that it will increase by an additional 40%. Bitcoin is a cryptocurrency, though. There is everything else after that. Trust exists for bitcoin. It largely resists censorship. There are 21 million Bitcoins currently in circulation. It must be a part of and a portfolio of large portfolios, similar to a pension fund. Perhaps just somewhat, but it must exist anyway."
Farley also praised other cryptocurrencies, including Ethereum, which he believes is a special cryptocurrency. He said;
"There are also all the other cryptocurrencies. Ethereum belongs to a unique category all its own. When stablecoins are included, everything else resembles a speculative stock. If you invest in it, you might profit from it or you might lose everything."
After dropping more than 2% of its value during the previous 24 hours, Bitcoin is currently trading at $24,000 per coin.
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