Cryptocurrencies Have Become Mainstream and Are Here to Stay, Bitcoin Reminiscent of Gold Rush – Featured Bitcoin News

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According to S&P Global, cryptocurrencies have become mainstream and appear to be staying here as more companies offer crypto services and adoption increases worldwide. Meanwhile, an S&P analyst believes Bitcoin’s surge is reminiscent of the US gold rush.

S&P Global says Bitcoin has become mainstream

The financial information and analysis company S&P Global released a special report on the current state of cryptocurrencies last week. It says:

Once considered an alternative trend, cryptocurrencies have become mainstream and appear to be here to stay.

The report covers a number of factors, such as legacy banks “looking at the asset class that could be incorporated into the product and service offering” and companies like PayPal that provide cryptocurrency services. Crypto adoption is also increasing in countries where people “want to protect their income from inflation and currency controls” or want faster and cheaper transfers.

Additionally, Jim Wiederhold, deputy director of commodities and real assets at S&P Global, penned a statement on Bitcoin last week. He wrote:

The recent craze for Bitcoin is reminiscent of the gold rush in the western US from 1848 to 1860. The US craze for gold exploded during this period.

The analyst said, “Recently, the parallels between the two assets have grown.” He noted that both are rare, “have the potential to be held outside of conventional financial markets,” and are good hedge against inflation. In addition, they are “not correlated with other popular asset classes in portfolios”. However, he pointed out that Bitcoin’s volatility has been many times higher than other asset classes over the past five years.

Pointing out the differences between gold and bitcoin, including the supply limit, he continued, “A few years ago, concerns about bitcoin theft were widespread. However, as Bitcoin becomes more prevalent, these concerns are subsiding. Although the risks of technology and counterparty remain. “

The analyst concluded that while gold is a more established asset, Bitcoin “is still in its infancy but is slowly becoming more accessible to mainstream investors.”

According to the S&P Global special report:

Cryptocurrency appears to be a niche or an experimental segment for these companies, but industry experts say they treat them with increasing seriousness.

Do you think Bitcoin has gone mainstream? Let us know in the comments below.

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