Results of an institutional survey conducted by JPMorgan has found that cryptocurrencies are very much here to stay. “Not just a temporary bubble” is the headline conclusion of the report, in which 11% of those investors who were surveyed said that their firms trade and/or invest crypto assets in some way, shape or form.
More crucially, 58% percent of all those surveyed were of the opinion that the cryptocurrency market is here to stay long term. However, just 7% predicted crypto to become one of the most important financial assets in the future.
Are the Wall Street Elite Changing Their Tune on Crypto?
Generally speaking, Wall Street traders and those from high up positions in the ‘traditional’ financial sector haven’t reacted warmly to the rise of cryptocurrencies. Most have remained sceptical, claiming that it is a bubble that will inevitably burst once more – just as it did in 2017. Many have dismissed cryptocurrencies as the beacon of millennial day traders who are merely jumping on a bandwagon.
The lack of a physical underlying asset, like gold and silver, or ties to trusted international banks, such as global currencies, has made traditional traders cautious and fearful about the digital currencies. But 2020 saw a big shift in opinion as the uptake in crypto use and sharp rise in price has turned heads, with the pandemic leading many to believe we won’t see a repeat of 2017.
Top Financial Experts Talk Up Crypto Investments
Among the many financial experts to change their tune following the 2020 crypto boom was American Financier and former White House Director of Communications, Anthony Scaramucci. Speaking to CNN back in January, Scaramucci surprised many by claiming crypto was becoming a “good long-term investment’, as the recent rise in price had caused the US government to step in to address some of the risks that come with bitcoin and other cryptocurrencies.
Crypto Still Divides Opinion
Despite the JPMorgan survey, government intervention and the changing opinions of leading financial experts like Anthony Anthony Scaramucci, the subject of the future of cryptocurrencies still continues to be a divisive one. However, where before there was a clear split between professional and retail traders, the split opinion worth focussing on is now within the financial sector. Day by day, what we’re seeing more of is top business, Wall Street and banking officials coming out to voice their support and confidence in the digital coins.
What Does the Future Hold?
With cryptocurrencies the past has told us that no predictions are certain, however the volatility of the best known coins, including bitcoin, appears to be reducing. What looks to be almost certainly on the not-too-distant horizon is the introduction of a government-backed cryptocurrency, with China thought to be leading the race to introduce the first. This would be a massive game changer as, until now, all cryptocurrencies remain decentralized.
Is a government-backed crypto a good or a bad thing? It depends who you’re talking to – just as crypto has always done, that’s a question that divides opinion.