Bitcoin has become the most compelling financial asset in the world, even more than gold, given the growth in cryptocurrency dealings in recent years.
According to a report released by ARK Invest, a New York-based investment organisation, Bitcoin has become the most compelling financial asset in the world since the advent of gold.
Bitcoin and other digital assets have opened the possibility of a global financial system subject to the control of individuals. This system is also away from the domination and monopoly of state institutions, ARK noted.
A more stable financial system
ARK’s report, published by crowdfundinsider on Monday 7 September, confirmed that Bitcoin is starting to raise doubts about the existing basis of traditional economic systems.
Cryptocurrencies such as Bitcoin seem to play a major role towards a more stable financial system and avoiding unexpected surprises, the report stated.
Bitcoin has given investors a unique opportunity, although not all investors consider Bitcoin a legitimate asset. However, the ARK report sees Bitcoin as the most compelling financial asset since gold.
ARK believes a new economic system will emerge through coded elements and other basic computer science concepts.
Drastic adjustments due to Bitcoin
Bitcoin helped establish an ecosystem based on solid foundations such as basic principles of computer science. While traditional institutions coordinate activities or implement the functions of the old financial system, Bitcoin operates as a single institution.
This comes as reports confirm that Bitcoin has become the preferred digital investment asset for North American investors.
Despite this optimism towards Bitcoin, an August 2020 report indicated that cryptocurrencies also suffer from monopolies and money laundering operations. This makes Bitcoin and other crypto assets very volatile and can lead to large losses for investors.