Singapore’s largest bank, DBS, believes Bitcoin (BTC) is a better store of value than the US dollar.
DBS’s chief investment office shared a letter to investors stating that Bitcoin is a better store of value than the US dollar.
DBS believes that if global banks continue to print money uncontrollably, the trend towards Bitcoin will increase. Due to banks printing money, investors are turning to cryptocurrencies in search of a safe harbor.
DBS notes that Bitcoin’s decentralized nature and limited supply are working together to make Bitcoin a powerful store of value option for investors. The team also points out that Bitcoin is defined as more of a crypto commodity due to its limited supply.
The bank adds that Bitcoin appears to have a low correlation with other assets, meaning it can help investors diversify their portfolios. However, DBS acknowledges that Bitcoin has scaling issues as it relies on a proof-of-work consensus mechanism that requires an enormous amount of energy to validate transactions. In addition, it is stated that the energy the network uses for transactions and Bitcoin mining may cause some concerns.