Banks ought to concentrate on blockchain expertise and buyers ought to improve their bitcoin holdings whereas trimming gold publicity, in accordance to Jefferies Global Head of Equity Strategy Christopher Wood.
- “This idea of how [blockchain] has begun to eat standard finance is why all banks ought to be centered on the expertise to see how to attempt to revenue from it relatively than to wait and be disrupted by it,” Wood mentioned in a observe on Thursday.
- The analyst additionally famous that if blockchain expertise disrupts the traditional finance sector by eliminating the necessity for intermediaries, it could possibly additionally probably set off the top of the “greenback paper commonplace.”
- Wood mentioned he might be including one other 5% to his bitcoin publicity, bringing it to 10%, whereas chopping 5% publicity to gold in his world, long-only asset allocation portfolio suggestion for his U.S.-dollar-based pension funds.
- His portfolio suggestion at present has 40% gold, 30% Asia (excludingJapan) equities, 20% unhedged gold mining shares and 10% bitcoin publicity.
- Wood just isn’t placing ethereum within the fund portfolio, nonetheless, as a result of he doesn’t suppose it’s a “retailer of worth” 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