Home Coins Bitcoin (BTC) Should I Buy Bitcoin? — Switzerland’s Largest Bank UBS Provides Guidance on...

Should I Buy Bitcoin? — Switzerland’s Largest Bank UBS Provides Guidance on BTC Investing – Markets and Prices Bitcoin News

- Advertisement - IQ Option CPA

AliExpress WW

Switzerland’s largest bank, UBS, has published guidance for clients about investing in bitcoin. The bank answers some important questions, such as whether one should buy bitcoin and other cryptocurrencies and whether bitcoin can be used to diversify portfolios.

‘Should I buy’ Bitcoin? UBS Answers

UBS published a detailed report about bitcoin last week. It answers some questions that the bank is currently discussing with its clients, explained the report authors, including the firm’s chief investment officer of global emerging markets, Michael Bolliger. UBS Group is currently Switzerland’s largest bank by total assets, followed by Credit Suisse Group.

The first question UBS answered in its report entitled “The rise of bitcoin” was “Should I buy?” The report explains that “Many clients are asking whether they should invest in bitcoin and other cryptocurrencies,” adding:

Our general guidance is this: While we wouldn’t rule out further price increases, we’re somewhat skeptical of any essential real-world use cases, which makes it hard to estimate a fair value for bitcoin and other cryptocurrencies.

“We are also cognizant of the real risk of one losing one’s entire investment. Investors in cryptocurrencies must therefore limit the size of their investments to an amount they can afford to lose. We also suggest thinking about an exit strategy,” the report authors elaborated.

While admitting that “Indeed, prices [of cryptocurrencies] could continue to climb in the near term,” the authors warned that “There is little in our view to stop a cryptocurrency’s price from going to zero when a better designed version is launched or if regulatory changes stifle sentiment.”

Can Bitcoin Be Used to Diversify Portfolios?

Another important question UBS answered was whether bitcoin can be used to diversify portfolios. This subject “has become a key argument for investors,” the report emphasizes. Noting that “correlations spiked substantially in 2020 with the outbreak of the pandemic, but have normalized since,” UBS explained:

While empirical evidence is mixed, bitcoin has had an overall low correlation to a wide range of other asset classes, including bonds, stocks, the Swiss franc, and gold.

The bank also highlighted that both institutional and retail investors are buying bitcoin. The reasons for buying include bitcoin being an attractive investment opportunity, a hedge against depreciating fiat currency, and FOMO.

What do you think about UBS’ advice on bitcoin investing? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.



AliExpress WW

Source link

- Advertisement - IQ Option CPA
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
469FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,558FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.21
GBP
1.40
CHF
1.09
NOK
0.12
JPY
0.01
CAD
0.79
AUD
0.78

Most Popular

bitcoin
Bitcoin (BTC) $ 51,450.00
ethereum
Ethereum (ETH) $ 1,609.60
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 538.43
litecoin
Litecoin (LTC) $ 189.48
eos
EOS (EOS) $ 3.87
okb
OKB (OKB) $ 17.61
tezos
Tezos (XTZ) $ 3.88
leo-token
LEO Token (LEO) $ 2.00
cardano
Cardano (ADA) $ 1.24
monero
Monero (XMR) $ 218.85
stellar
Stellar (XLM) $ 0.426569
chainlink
Chainlink (LINK) $ 30.61
huobi-token
Huobi Token (HT) $ 15.19
tron
TRON (TRX) $ 0.048678
usd-coin
USD Coin (USDC) $ 0.994862
dash
Dash (DASH) $ 227.12
neo
NEO (NEO) $ 40.35
iota
IOTA (MIOTA) $ 1.22
nem
NEM (XEM) $ 0.793089
zcash
Zcash (ZEC) $ 126.74
maker
Maker (MKR) $ 2,295.50
paxos-standard
Paxos Standard (PAX) $ 0.997014
ethereum-classic
Ethereum Classic (ETC) $ 11.36
vechain
VeChain (VET) $ 0.047474
true-usd
TrueUSD (TUSD) $ 0.997315
ftx-token
FTX Token (FTT) $ 32.03
kucoin-shares
KuCoin Token (KCS) $ 4.78
waves
Waves (WAVES) $ 9.77