It took only two months for the price of Bitcoin to double between late December and late February, and it has increased in value almost steadily since then, and is now close to $ 60,000. But is this rally sustainable and a reason to buy the most liquid cryptocurrencies?
Not according to the results of a new report by commodity strategists at BofA Securities that undermines many of the often-cited reasons for owning Bitcoin: that it democratizes the financial world, does not correlate with other assets, and acts as a hedge against inflation. In addition, the report contains other shortcomings in the cryptocurrency.
The report concludes that “the main reason for holding Bitcoin is not diversification, stable returns or inflation protection, but rather a mere price increase, a factor that depends on bitcoin demand outpacing supply.” There is none good reason to own BTC unless you watch prices go up. “
Check out the slideshow above to learn more about Bitcoin’s key “dirty little secrets”, according to commodity strategists at BofA Securities.