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Bitcoin: The new digital gold report

Bitcoin: the new digital gold

Research reports

Zurich, 2021 – A report from Sygnum Bank on Bitcoin’s journey from risk asset to the new digital gold. Key report takeaways include:

  • The blockchain solution and the internet of Value
  • Bitcoin – the original digital asset
  • Valuing Bitcoin – the 200 billion dollar question
  • The diversification benefits of Bitcoin
  • Five key considerations when investing in Bitcoin
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Executive summary:

The invention of blockchain has created the “Internet of Value” – where direct and instantaneous transfer of value between two parties is possible, anywhere in the world, without a centralised intermediary. Since then, all kinds of new and innovative applications have been built on the blockchain, with the potential to transform the financial industry and beyond.

This has also given rise to the new asset class of protocol tokens, also referred to as cryptocurrencies, which are associated with specific blockchains. These are now gaining traction in the investment world. In particular, Bitcoin has received considerable attention as “digital gold”, presenting an alternative investment option to hedge against inflationary pressure. This has been driven by the unprecedented amounts of scal stimulus that has been injected into economies globally as a response to the Covid-19 crisis.

This paper is focused on Bitcoin. It will examine the characteristics which make it comparable to gold, and propose various methods on how to think about its value. It will also discuss the impact of adding a small allocation of Bitcoin to a traditional portfolio and the diversification benets which it will bring. Lastly, it outlines the key considerations that any investor should take into account before investing.”2021 was the year when the consensus shifted to accepting that crypto assets are here to stay. Looking forward, our medium-term outlook for the market is strongly bullish as all the key macro drivers point in a positive direction – a rare state for any asset class. In 2022, we expect to see another strong year of continued innovation and growth”, adds

About Sygnum
Sygnum is the world’s first digital asset bank, and a digital asset specialist with global reach. With Sygnum Bank AG’s Swiss banking licence, as well as Sygnum Pte Ltd’s capital markets services (CMS) licence in Singapore, Sygnum empowers institutional and private qualified investors, corporates, banks, and other financial institutions to invest in the digital asset economy with complete trust. Sygnum operates an independently controlled, scalable, and future-proof regulated banking platform. Our interdisciplinary team of banking, investment, and Distributed Ledger Technology (DLT) experts is shaping the development of a trusted digital asset ecosystem. The company is founded on Swiss and Singapore heritage and operates globally. To learn more about Sygnum, please visit www.sygnum.com.

Disclaimer: This document was prepared by Sygnum Bank AG. This document may contain forward looking statements and may be subject to change. The opinions expressed herein are those of Sygnum Bank AG, its affiliates, and partners at the time of writing. The document is for informational purposes only and contains general material. It is for use by the recipient only. It does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum Bank AG to purchase or sell assets or securities. It is not intended to be used as a general guide to investing and should be used for informational purposes only. When making an investment decision, you should either conduct your own research and analysis or seek advice from an expert to make a calculated decision. The information and analyses contained in this document have been compiled from sources believed to be reliable. However, Sygnum Bank AG makes no representation as to its reliability or completeness and disclaims all liability for losses arising from the use of this information.

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