The American multinational investment bank, TD Cowen, published a recent report on the properties that make Bitcoin a superior store of value.
TD Cowen’s report details Bitcoin’s properties as a store of value. First of all, the firm pointed out that the limited issuance of the cryptocurrency, of 21 million units, makes it a store of value potentially superior to fiat currencies and other forms of money, such as digital. the report points out that cryptocurrency is potentially superior to known reserve assets, including gold and other precious metals.
According to TD Cowen analysts, Bitcoin has exceptional properties, such as durability, portability, fungibility, verifiability, divisibility, and scarcity; It also pointed out that it is transparent and resistant to censorship.
For all this, TD Cowen considers Bitcoin “a superior store of value relative to all other forms of money.”
Bitcoin Is Here to Stay, According to TD Cowen
Despite its short history, compared to other currencies and assets such as the dollar or gold, TD Cowen pointed out that Bitcoin has shown great performance and has managed to attract interest and gain the trust of millions of investors and people around the world. world.
Likewise, small and large companies from different sectors and industries are becoming increasingly interested in and trusting cryptocurrency, the same as local governments and entire countries such as El Salvador, thanks to the history of growth and resistance that Bitcoin has created since its launch in 2009.
According to the firm, although Bitcoin is relatively new, it “has withstood enough market testing to suggest a high probability that it will not disappear as a valuable asset any time soon,” but rather the cryptocurrency is becoming part of the mainstream.
Bitcoin Mining is Energy Efficient
Bitcoin mining was another topic TD Cowen talked about in its recent report. According to Bitcoin Magazine, the firm noted that this activity does not pose a potential risk to the environment. Thus, contrary to what some still believe, TD Cowen pointed out that bitcoin mining is one of the most efficient uses of electrical energy.
“Bitcoin mining is, in our opinion, one of the most efficient and clean industrial uses of electricity and is improving its energy efficiency at a faster rate than most other industries,” the firm noted.
In line with the above, the recent announcement by the Kyrgyz government stands out, which has approved a project to invest $20 million dollars in the creation of new facilities at the Kambar-Ata-2 hydroelectric plant, to take advantage of the energy surplus of this plant in bitcoin mining.
MicroStrategy Strategy with Bitcoin
TD Cowen also highlighted the paradigm shift that Michael Saylor’s business intelligence company MicroStrategy is driving with the Bitcoin-based strategy that it began implementing in August 2020.
MicroStrategy is accelerating shareholder value creation, TD Cowen said. The firm also noted that Saylor’s company is combating “the depreciation of the purchasing power of the US dollar” with Bitcoin.
Michael Saylor reported three years ago that his company would start investing in bitcoins to protect the value of its assets. However, according to TD Cowen, this has quickly become an opportunistic strategy, aimed at accelerating the creation of value for the company’s shareholders. This is why many investors see MSTR as an attractive vehicle to gain exposure to Bitcoin, TD Cowen concluded.
MicroStrategy shares rose 2.66% this week, after the release of TD Cowen’s bullish report on Bitcoin and his cryptocurrency store of value and investment strategy.
By Audy Castaneda
