Banks ought to deal with blockchain expertise and traders ought to enhance their bitcoin holdings whereas trimming gold publicity, in accordance to Jefferies Global Head of Equity Strategy Christopher Wood.
- “This concept of how [blockchain] has begun to eat conventional finance is why all banks should be focused on the technology to see how to try and profit from it rather than to wait and be disrupted by it,” Wood mentioned in a word on Thursday.
- The analyst additionally famous that if blockchain expertise disrupts the traditional finance sector by eliminating the necessity for intermediaries, it might additionally probably set off the tip of the “dollar paper standard.”
- Wood mentioned he might be including one other 5% to his bitcoin publicity, bringing it to 10%, whereas reducing 5% publicity to gold in his world, long-only asset allocation portfolio advice for his U.S.-dollar-based pension funds.
- His portfolio advice at the moment has 40% gold, 30% Asia (excludingJapan) equities, 20% unhedged gold mining shares and 10% bitcoin publicity.
- Wood will not be placing ethereum within the fund portfolio, nonetheless, as a result of he doesn’t suppose it’s a “store of value” asset. However, he expects the second-largest cryptocurrency by market worth to outperform bitcoin within the coming months.
Read More: Jefferies’ Wood Cuts Gold Exposure in Favor of New Position in Bitcoin