US fund sees bitcoin as ‘one of the most profitable assets,' alternative to US$150 trillion of sub-zero yielding cash and bonds

Asia's Tech News Daily

bitcoin, Hong Kong, leading financial institutions, digital assets

Inflation and relaxed monetary policies are poised to erode US$150 trillion worth of bonds and cash of their real value over the next decade, giving alternative assets like bitcoin a leg up, according to US money manager Capital Group.

Bitcoin should “interest anyone interacting with money”, equity portfolio manager Mark Casey said during a webinar on Wednesday, making one of its most high-profile calls on the oldest digital currencies. Bitcoin could become “one of the most profitable assets,” the firm said, adding that cryptocurrencies’ independence from central bank control and limited supply make them a good inflation hedge.

“There is tremendous appeal for this type of asset,” said Casey, whose Los Angeles-headquartered company manages about US$2.6 trillion in assets globally. Even if a small but increasing portion of the world’s US$600 trillion financial assets gets allocated to bitcoin, that would continue to drive up its price, Casey added.

Bitcoin climbed to a record high on Wednesday, and the first US bitcoin futures-based exchange-traded fund built on gains after a solid debut on Tuesday, according to a Reuters report. It traded as high as US$66,974.77, breaking the previous record of US$64,895.22 in April.

Capital Group, which has 29 offices globally including in Hong Kong, has joined a growing band of leading financial institutions that have started embracing bitcoin whose market cap topped US$1.2 trillion on Wednesday. Bank of America said digital assets were “too large to ignore” in a research report published this month. Fidelity Investments, which manages assets worth US$4.2 trillion, plans to launch a bitcoin exchange traded fund and has applied to the US securities watchdog for approval.

The positive call on bitcoin comes amid the launch of the first US bitcoin-linked ETF on Tuesday, which tracks bitcoin futures traded on the CME. This partly helped to drive bitcoin over US$64,000 on Wednesday, close to its historical high of US$64,860 reached in April.

Bitcoin has “non-inflationary” properties because all fiat currencies are prone to losing their value if central banks adopt a loose monetary stance to support their respective economies. The bitcoin blockchain is designed to cap supply at 21 million, of which over 18.8 million has already been mined. The limited supply and independence from central banks’ control prevents the cryptocurrency’s value from being diluted, Casey said.

Casey also pointed out that there are about US$20 trillion worth of bonds outstanding and another US$100 trillion of assets tied to cash that will be affected by negative interest rates globally. And coupled with “tens of trillions” of bonds whose coupon rates will be lower than the inflation rate, the total amount affected was likely to be around US$150 trillion, he said.

Bitcoin advocates have for long touted the anti-inflation property of the cryptocurrency, arguing that it serves as a store of value and that it qualifies as a safe haven asset as good as gold.

While Capital Group did not answer questions about its exposure to digital assets during the webinar, the 90-year-old asset manager appears to have a stake in bitcoin. According to a report by Blockworks, which provides insights on digital assets, Capital Group holds a 12 per cent indirect stake in Nasdaq-listed MicroStrategy. MicoStrategy is a provider of enterprise analytics and owns over 105,000 bitcoin.

Bitcoin’s critics, meanwhile, say that its volatility makes it a bad choice for preserving value over short periods of time.

However, over the course of 10 years, bitcoin’s performance was found to be uncorrelated to equities, bonds, the US dollar and commodities, according to Bobby Esnard, a tech analyst at Capital Group.

“Bitcoin could be useful in places where there are restrictions on currency exchange, and where the local currency values [are not stable],” he said.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


Meet the variant hunters on the frontline

(Getty Images) Professor Sharon Peacock is acutely aware that in her line of work there is “a fine balance between calling it right and unduly panicking people”. She is the ... Read more »

We picked the 3 coolest two-wheelers from the EIMCA Moto Show

This year’s started on November 25 and, boy, has it showcased some juicy rides for two-wheeler lovers. Sadly, I was unable to attend, but I could comfort myself with endless ... Read more »

The Queen to leave Windsor Castle next month?

The Queen is expected to travel up to her Sandringham estate next month, where she will reportedly host her family for Christmas this year. While Buckingham Palace is yet to ... Read more »

Shop deeply discounted Black Friday headphone deals from Bose, Sony, Jabra and AirPods

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. Winter’s here, which means you’ve got plenty of time to cozy ... Read more »

Save on leggings, sports bras and more during the Athleta Black Friday sale

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. Athleta is among our favorite retailers to shop for athleisure. For ... Read more »

Kerbal Space Program 2: Release Date, Trailer, Multiplayer, Gameplay, Price And Everything You Need To Know

Kerbal Space Program 2 is an upcoming game release that is exciting many players, and we have all the information you need to know ahead of its launch. © GiveMeSport ... Read more »

Samsung's Galaxy Note series might be discontinued for good: Report

The Samsung Galaxy Note series was skipped for 2021, with the South Korean tech giant unveiling the Galaxy Z Fold 3 and Galaxy Z Flip 3 at around the same ... Read more »

Black Friday deals: Get 50% off Revlon's One-Step hair dryer brush at Walmart

—Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. Say goodbye to frizzy hair! If you’re looking to create salon-quality styles ... Read more »

The best Roomba Black Friday deals you can get on iRobot vacuums, mops and more

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. You can’t have a discussion about robot vacuums without talking about ... Read more »

KitchenAid mixer Black Friday sales are live: The best KitchenAid deals at Amazon, Kohl's and more

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. KitchenAid is known for quality products that range from large appliances ... Read more »

'Tune out the world': These Sony noise-canceling wireless headphones are nearly 60 percent off for Black Friday

We may receive commission from purchases made via links on this page. Pricing and availability are subject to change. They don’t really float in the air like this; but they’ll ... Read more »

Roombas Are as Little as $175 Thanks to These Epic Black Friday Deals

vacuuums Amazon/Walmart If your most time-consuming chore is keeping your floors clean, then it's a good idea to invest in a high-quality robot vacuum cleaner. And there's no better time ... Read more »

Degoo Premium can serve up all the cloud storage you'll need for life for just $59.99

TLDR: For under $60, a Degoo Premium Lifetime 10TB Backup Plan locks up all that cloud storage space forever. Cloud storage is like New York real estate. When you stumble ... Read more »

Grab a year of PlayStation Plus and a lifetime of VPN Unlimited at a serious Black Friday price

TLDR: With the VPN Unlimited Lifetime and PlayStation Plus 1-Yr Subscription Bundle, you get both awesome PlayStation action and full online protection, all for under $50. Far Cry 6. Battlefield ... Read more »

Anthony Scaramucci says the COVID-driven sell-off is a buying opportunity in stocks and crypto — and calls it a 'mini March of 2020'

© The Washington Post/Getty Images Anthony Scaramucci runs investment company SkyBridge Capital. The Washington Post/Getty Images Anthony Scaramucci said Friday’s brutal selloff is a buying opportunity for stocks and crypto. ... Read more »

Whitty worried about whether public would accept new restrictions

© PA Wire Coronavirus – Mon Nov 15, 2021 England’s chief medical officer has said his “greatest worry” is whether the public would accept fresh restrictions in the face of ... Read more »

The best Bed Bath and Beyond Black Friday deals: Save on KitchenAid, Keurig and more

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. Black Friday is here and the deals are ready for snagging. ... Read more »

Best telescopes 2021: Top picks for viewing planets, galaxies, stars and more

If you’re looking for the best telescopes of 2021, then you’ve come to the right place. Whether you’re a seasoned astronomer, who loves to chase exquisite views of deep-sky targets ... Read more »

Amazon has major markdowns on fashion for Black Friday: These are the best deals on Adidas, Ugg and more

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. Black Friday 2021 is here and Amazon has all the fashion ... Read more »

The best Black Friday sneaker deals from Vans, Adidas, Nike and more

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. Sneakerheads and holiday shoppers rejoice: Black Friday is here and so ... Read more »

Covid: Todo lo que sabemos hasta ahora sobre la variante B.1.1529

© Getty Images GettyImages-1287392079.jpg ¿Cuál es la nueva variante? Surgió una una nueva variante de covid-19, conocida como B.1.1529. La Organización Mundial de la Salud se basa en el alfabeto ... Read more »

Black Friday streaming deals: save on Hulu, Disney Plus, HBO Max subscriptions

Subscribing to all the TV streaming services you want can be an expensive endeavor – but these Black Friday streaming deals are set to help you out on your quest. ... Read more »

The 4TB Seagate Barracuda hard drive is a must-buy at this low price

Black Friday deals are always tempting, but this discount on the Seagate Barracuda HDD is up there with the best Black Friday hard drive deals we’ve seen. The 4TB model ... Read more »

Bitcoin Retreats 20% From Record, Joining Risk-Asset Sell-Off

1/4Bitcoin Retreats 20% From Record, Joining Risk-Asset Sell-Off2/4Bitcoin Retreats 20% From Record, Joining Risk-Asset Sell-Off3/4Bitcoin Retreats 20% From Record, Joining Risk-Asset Sell-OffYahoo News is better in the app Stay in ... Read more »

Razer Blade 15 gaming laptop gets a ridiculous $1,500 discount with this Black Friday deal

Razer’s gaming laptops usually command a high premium when compared to the competition, but this Black Friday deal from Amazon takes the eye-watering asking price the Razer Blade 15 usually ... Read more »

New virus variant emerges in Africa, stokes worldwide fears

1/8Virus Outbreak New VariantPeople wait to get vaccinated at a shopping mall, in Johannesburg, South Africa, Friday Nov. 26, 2021. Advisers to the World Health Organization are holding a special ... Read more »

Tesla decides against state aid for German battery plant

Construction plans for the plant would not be affected by the decision, the spokesperson said. Tesla said on Friday it has withdrawn its application for state aid for its planned ... Read more »

One of the world's most important programming languages is in trouble

Heavyweight users of PHP, the programming language that powers 78% of the web have scrambled to create the PHP Foundation, as one of its core contributors switches his focus to ... Read more »

This is the only Black Friday air fryer you should be looking at

Looking for a great Black Friday air fryer deal? If so, you just found it, as Amazon has slashed 25% off the price of the Instant Vortex Plus air fryer, ... Read more »

AWS majorly expands free data transfer limits

Amazon Web Services (AWS) has announced an expansion of its free tier, increasing the amount of data that customers can transfer from 1GB/month to 100GB/month. Similarly, data transfer from AWS’ ... Read more »

Best privacy tools for anonymous browsing in 2021

The best anonymous browsers and privacy tools make it easy to safeguard your data against unauthorized collection and use by third-parties. The best paid anonymous software Click the links below ... Read more »

Our number one vlogging camera just hit its lowest price in Amazon's Black Friday sales

The Black Friday camera deals have served up some real gems this year – and if you’re looking for a video workhorse to take your YouTube channel or travel vlogs ... Read more »

'Looks fantastic!' - London hospital achieves first implant using a 3D-printed eye

© Getty prosthetic eye The operation took place at London’s Moorfields Eye Hospital – and the pioneering technique may slash waiting times for a prosthetic. A 3D-printed eye is more ... Read more »

The craziest Black Friday deal ever: Get a website builder with a Blackfriday domain name

For those looking to build an ecommerce empire in 2022, having a Black Friday domain name (like for the most important peak trading period of the year may well ... Read more »

These are the gaming TV deals for PS5 and Xbox you won't want to sleep on

Having a PS5 or Xbox Series X is all well and good, but what use is all that next-gen firepower without a gaming TV that can show it off with ... Read more »

Harga Bitcoin Ambles 20 Persen dari Rekor Tertinggi Awal Bulan

© Copyright (c) 2016 TEMPO.CO foto TEMPO.CO, Jakarta – Harga Bitcoin ambles 20 persen dari posisi rekor tertingginya yang dicapai awal November lalu lantaran varian baru virus corona mendorong aksi ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic