Morningstar, a US-based investment management company, educates its investors on Bitcoin and other cryptocurrencies. In a recent Q&A post for investors, Morningstar said that digital space is part of this role in empowering investors after the recent growth.
The company agreed that despite providing resources to investors, cryptocurrency does not have a long-term position on investments.
With the motive of helping the investors, the Morningstar industry is divided into four categories as part of educating investors about digital assets. Cryptocurrencies, cryptocurrency storage, and payments, digital securities and services, networks and exchanges.
Recentlycryptocurrency rally, with assets hitting an all-time high of $61,800 in press time. Even Tesla (Nasdaq trade: TSLA) has played a key role in increasing the number of institutional investors. Morningstar recently published an article on the benefits and risks of incorporating Bitcoin into an investment portfolio. Interestingly, the company is skeptical of considering Bitcoin as an investment asset.’
A US-based investment research firm said that the property is gradually losing its value as a means of diversification as the bitcoin space of institutional investors grows. Therefore, the company warns that Bitcoin does not guarantee that the risk-adjusted return of the portfolio will improve overtime.
However, Morningstar also said Bitcoin can be considered a great alternative currency and a tool for new technologies in the upcoming future.
Morningstar added that Bitcoin representatives need to look for other alternatives that are emerging recently. Certain coins like Litcoin, Cardano, Bitcoin Cash, and Lumens have become a strong potential replacement for the Bitcoin
The company believes and pointed a flaw in Bitcoin that it does not generate cash flow. Its value mainly depends on what people are willing to pay. Currently, Morningstar operates in about 27 countries with 621,370 investments and 5,230 employees.