A recent study from Bank of America shows that Bitcoin is the best performing currency this year and marks a milestone in the new classification.
Bank of America (BOFA) Today we’ve published the latest “Cross Asset Winners and Losers” rankings, reflecting the current rankings of key assets and revenues on USD terms. This study highlighted two interesting details. Both are notable feats. Bitcointhe largest cryptocurrency by market capitalization.
Bitcoin is better than major traditional assets
Bitcoin surged to its all-time high today, following the lead in the S&P 500 and global M2 money supply. Specifically, it rose to a peak of $118,839, marking the third consecutive day when BTC reached unprecedented prices.
YTD Cross Asset Ranking | Bank of America
Interestingly, this start suggests that the US dollar is depreciating more against Bitcoin than other currencies around the world, making it a better hedge against inflation and devaluation. Robert Kiyosaki, author of Rich Father’s Poor Father, reflects this belief, reiterating several times that savings on Bitcoin is better than “fake Fiat.”
Bofa classifies Bitcoin as currency
As previously established, BOFA classified Bitcoin under the Currency section, not as an asset. Matthew Sigel’s Vaneck research director further highlighted this classification. Tweet today.
This is a step in the right direction for Bitcoin, especially since many people, including Bofa, viewed it as a bubble. Investment firm Tephra Digital said BTC only appeared on the asset bubble chart of Bofa’s chief investment strategist Michael Hartnett.
However, Hartnett categorized Bitcoin as the most important technical disruption of the past 1,000 years in June. Currently, BOFA is adding Bitcoin to the Currency section in its Cross Assets Report.
On the other hand, if Bitcoin is placed in the Assets section, it ranks fourth. Gold leads the category at 25.7%, with European and UK stocks next at 25.4% and 19.8% respectively.
In particular, Bitcoin’s evolving views among major financial players highlight new institutional use cases. Pioneering cryptocurrencies have become mainstream assets beyond their new reputations of “fraud” and “bubble.”
Currently, Bitcoin is ranked among the top six assets worldwide. Furthermore, many countries and business companies now view Bitcoin as a valuable reserve asset. Apart from the US, Pakistan and Kazakhstan are considering creating a Bitcoin Reserve, while companies such as Strategy, GameStop and Metaplanet have adopted BTC as their main corporate financial assets.