The official Twitter account of River Financial (@river) has endorsed the largest global cryptocurrency Bitcoin in its recent message to its followers.
The post says that the company expects investors soon to realize that “Bitcoin is an answer to their problems” since their traditional assets are gradually getting devalued from an inflating currency. Some will have to realize this sooner than others, the tweet adds. The fund suggests that investors store their “economic energy in an incorruptible and scarce digital asset instead.”
Currently, Bitcoin is trading at the $26,130 level, swinging below $26,000 and then back slightly above it.
According to the chief commodity strategist of Bloomberg Intelligence Mike McGlone, BTC is likely to face a new competitor which may lure investors from it (and other risk assets) into the traditional stock market.
The reason for that is that the Fed Reserve, according to him, is unlikely to begin injecting liquidity into the economy anytime soon and this was the necessary condition for Bitcoin to prosper. Now, the profitable asset that may outrun BTC is the 5% interest rate in Treasury Yield, which offers a lot more safety than all risk assets, Bitcoin included, put together.
McGlone compared BTC to a “teenager raised on a high-sugar/stimulant diet of extraordinarily low-interest rates and facing weaning." Still, Bitcoin’s key advantages of f limited supply and early days of global adoption may be outperformed by “5% US Treasury bills and deflating producer prices”, as the expert believes.