Bitcoin and blockchain technology is quickly spreading across all industries with special interest by financial firms in emerging technology. A recent report shows close to half of all professionals in the financial industry believe Bitcoin (BTC) will outperform the S&P 500 in the next year. Furthermore, traditional finance professionals say illicit activities and lack of a large enough market are the main causes preventing interaction in the field.
According to a study carried out by Chainalysis, a cryptocurrency data analysis firm, across 350 professionals in the finance industry, 48.6% of them believe BTC will outshine S&P 500 index in growth rate in the next 12 months. Comparative to Bloomberg Barclays bond index, the housing index and equities, BTC emerged the favorite asset choice for the financial professionals in the short term.
Biggest growth rate in the next year?
The affinity to bitcoin is clear as an investment vehicle and is further amplified by the reasons the experts gave on why their companies could adopt cryptocurrencies and blockchain technology. Most of these traditional financiers (43.9%) see client demand for crypto as the main reason to adopt crypto. The opportunity to secure the company’s technological future (19.9%), being a market leader (18.2%) and the money-making opportunities (17.9%) are reasons to enhance adoption across legacy financial systems.
However, most of these professionals remain skeptical of the industry, with regulation playing a big role in keeping them away from the industry. Illicit use of crypto (39.0%) remains the biggest challenge these professionals face followed by the strain from government authorities to regulate the industry (17.9%). Internal factors such as lack of executive support and lack of market opportunities registered 17% and 25% respectively.