Bitcoin has been likened to a tech stock because of its potential in giving massive gains and losses just like a new business.
Bitcoin’s tech stock capacity is more than that of digital gold. Investors can earn a lot if things go well or lose heavily when expectations fail.
This was the summary from Coinshare’s report two days ago (August 10). Coinshares talked on the topic, “A Little Bitcoin Goes a Long Way.” In the report, authors James Butterfill and Christopher Bendiksen contend that Bitcoin is to be praised having reached its present height from $0.
The report states that Bitcoin is even likely to reach greater heights:
“At the same time, there is a non-zero chance that it fails entirely, leaving the value of Bitcoin close to zero.”
Some crypto investors have opined that it is important that companies invest 1% of what they have in Bitcoins but Coinshares thinks that is too little saying something within the range of 3%-4% is more like it.
Coinshares believes that Bitcoin should be used by anyone as a store of value. After its analysis on the asset from 2015 till date, it said Bitcoin has given an average of 9.7% profit annually.
Becoming more like a store of value
There is nothing to worry about if Bitcoin is regarded as a tech stock. Afterall, tech stocks have given good profits since the crypto bloodbath that happened in March. Examples include Facebook, Amazon, Apple, and Google.
Not long ago, Bitcoin made a new ATH since 2019 after surpassing the price of $12,000.
Coinshares believes that Bitcoin is still growing. It says: “As Bitcoin matures, its robustness is further proven, and its risk of failure moves further and further away from zero, we believe investors will start treating it differently, leading its macroeconomic behaviour to follow suit.”