Standard & Poor’s Global (S&P Global) stated that as more companies provide encryption services and global adoption increases, cryptocurrencies have become mainstream and appear to continue to exist. At the same time, Standard & Poor’s analysts believe that Bitcoin’s rise is reminiscent of the US gold rush.

S&P Global says Bitcoin has become mainstream

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

Once recognized as an alternative trend, cryptocurrencies have become mainstream and seem to continue to exist.

The report cited many factors. For example, traditional banks “carefully studied the asset classes that can be integrated into products and services,” and companies such as Paypal have begun to provide cryptocurrency services. The adoption of cryptocurrencies is also growing in countries where people “seek to protect their income from inflation and currency controls” or faster and cheaper remittances.

In addition, Standard & Poor’s Deputy Director of Global Commodities and Physical Assets Jim Wiederhold (Jim Wiederhold) published an opinion article on Bitcoin last week. He wrote:

The recent enthusiasm for Bitcoin is reminiscent of the gold rush in the western United States from 1848 to 1860… During this time, the United States’ enthusiasm for gold surged.

The analyst explained: “Recently, the similarity between the two assets is increasing.” He pointed out that both are scarce, “have the potential to be kept outside the traditional financial market”, and both are good inflation. Hedging tool. In addition, they “have nothing to do with other popular asset classes in the portfolio.” However, he pointed out that in the past five years, Bitcoin’s volatility has been several times that of other asset classes.

See also  Blue Origin protests NASA's award of Moon Lander contract to SpaceX

He pointed out that the difference between gold and Bitcoin, including supply restrictions, “fears of Bitcoin theft were rampant a few years ago; although these concerns are gradually disappearing as Bitcoin becomes mainstream. Although technology and counterparties are lingering. The risk of going still exists.”

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

According to the S&P Global Special Report:

For these companies, cryptocurrency seems to be a niche or experimental field, but industry experts say they are paying more and more attention to it.

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

Picture Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for reference only. It is not a direct offer or solicitation of an offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. The company or the author is not directly or indirectly responsible for any damage or loss caused or allegedly caused by the use or reliance on any content, goods or services mentioned in this article or related thereto.