The optimistic predictions surround Bitcoin continue to pop up.
According to the latest reports, now Weiss Ratings has some great mass adoption-related news.
Weiss Ratings drops great BTC-adoption related prediction
Weiss Ratings analysts are predicting a trillion-dollar asset migration away from bonds and into Bitcoin and gold.
In a new post on the macro economy, Juan Villaverde and Bruce Ng just stated that bonds had lost their luster in the financial markets.
The Daily Hodl notes that usually, institutional investors traditionally allocated 30% of their portfolio into bonds as a hedge against the massive market drops. But now, the economic landscape definitely changes, and the analysts said that this strategy is outdated.
“… the hedge doesn’t work anymore. That’s because of decades of hyper-growth in world debt markets. That plus massive money-printing to prevent them from collapsing… has totally changed the financial landscape,” they say.
The continue and explain that “After inflation, gov’t bond yields are near (or below) zero – and will continue to be for the foreseeable future. Even before subtracting inflation, yields are already near-zero or negative. As a result, the classic bond hedge is now broken.”
They also said that it’s important to note the fact that bonds fail to prop up company assets during the dump that took place this past spring.
A fraction of bond funs will move into BTC
The utility does down the drain, and the analysts say that at least a fraction of funds that were allocated to bonds will bo into Bitcoin.
“As we write, roughly $30 trillion is sitting in government bonds. Suppose 10% of that amount finds its way into gold and Bitcoin. That works out to an exodus of $3 trillion. And if that is split evenly, we’d end up with…” they said.
The continued as said, as cited by the Daily Hodl that “$1.5 trillion going into gold – which is 15% of gold’s market cap (now about $10 trillion). And…$1.5 trillion going into Bitcoin – which is 4.4 times its market cap (now about $338 billion).”