Wells Fargo compares Bitcoin to the 1850 gold rush

On Monday, the wholly-owned subsidiary of US bank Wells Fargo, the Wells Fargo Institute of Investments, released a guide to investing strategy with a page dedicated to crypto assets, Bitcoin. Tracie McMillion, Head of the Institute’s Global Wealth Strategy, compared crypto investing to the “early days of the gold rush of 1850”.

As a guide to discuss some of the traditional trends and investments going on in the world of finance, the 7-page update has also dedicated 1 page to Bitcoin and the crypto economy in general. As McMillion said, Bitcoin is “the best performing and most volatile asset in 2020” compared to stocks and other investment vehicles discussed in the strategy update.

The gold digging fever took place from 1848 to 1855 in California

“2020 is a wild and crazy year, so it’s fitting that the best-performing asset group in 2020 has the craziest-sounding name – cryptocurrency. Bitcoin, the biggest cryptocurrency, is up 170 percent this year, which is over 90 percent of the gains it has made in 2019, ”the McMillion report emphasized. Despite the crypto hype, McMillion and Wells Fargo were unaffected. The author added:

“If you feel out of madness, don’t. Most investors have heard of cryptocurrency, but few have ever bought or used it.

A chart shared by the Wells Fargo investment institute in its latest investment strategy guide published December 7, 2020.

The author admits that “Bitcoin actually outperformed gold and the S&P 500 index over the past three years”. But the McMillion report asserts that cryptocurrency advocates have had a “volatile journey” and “perseverance to get there.”

“Investing in cryptocurrencies today is like living in the early days of the gold rush of 1850, involving speculation rather than investment,” said Wells Fargo’s head of global asset allocation strategy. Italy. However, he cannot completely refute the cryptocurrency economy and says that “cryptocurrencies may become worth investing in one day”. For example, McMillion notes that over the past 12 years, Bitcoin has “grown from zero to $ 560 billion in market cap.”

The Wells Fargo analyst admits that digital assets like Bitcoin are still here. “The fad doesn’t last 12 years. There are good reasons for this, ”admits McMillion. Furthermore, the Wells Fargo contributor said the bank will publish more on its “digital asset space” including its “left and right side”, the author concludes.

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