The largest bank in Southeast Asia, the Singapore-based DBS Bank, states in its quarterly crypto report that it expects a pandemic-driven Bitcoin establishment in the near future. Big international banks usually hold back when it comes to the cryptocurrency Bitcoin.
The bullish Bitcoin forecast of the internationally active DBS Bank is all the more astonishing. The clear stance goes back to the bank’s chief economist, Taimur Baig, who divides the Bitcoin establishment into two phases.Bitcoin in the pre- and post-corona phaseFor the economist at DBS Bank, Bitcoin was primarily speculative in the time before Corona. Investors wanted to be there and have invested a small part of their assets in Bitcoin.
However, now that central banks and states are doing all they can to avoid the economic collapse, Bitcoin’s image is changing. Bitcoin is no longer a speculative asset, but a hedge against the devaluation of US dollars, euros and co.In addition to gold, investors are therefore looking for other safe havens that are characterized, among other things, by a stable supply. This is exactly what more and more institutional investors are finding with Bitcoin. For example, we recently reported on the Nasdaq company Microstrategy, which has invested US $ 250 million of its reserves in Bitcoin.
The fear of inflation spreads accordingly to all investor classes, which underpins the argument of economist Taimur Baig.