Bitcoins (BTC) risk-return is a different beast compared to even the darling of the stock market of the 2000s, Amazon.<\/p>\n
That was the conclusion drawn by one of the cryptocurrency industrys best-known analysts and the creator of a uniquely accurate Bitcoin price model.<\/p>\n
Uploading a chart showing BTC risk-return versus Amazon stocks, U.S. bonds, gold and the S&P 500 on Jan. 24, PlanB showed Bitcoin behaved completely differently as an investment.<\/p>\n
Amazons significant losses in the year 2000, combined with its revered recovery ever since still keeps it far below Bitcoins risk-reward ratio.<\/p>\n
Bitcoin is a different beast! PlanB summarized, describing Amazons position on the chart as much closer to normal.<\/p>\n
Amazons share price appeared to shake off revelations involving Saudi Arabia allegedly hacking CEO Jeff Bezos this week. Both $AMZN and BTC nonetheless fell over the past seven days, with the latter potentially reacting to uncertainty stemming from China.<\/p>\n<\/p>\n
Bitcoin risk-return vs. major investments. Source: PlanB\/ Twitter<\/p>\n
The impressive contrast comes days after Cointelegraph reported on Bitcoins risk-adjusted returns outperforming every major investment offering based on a four-year investment.<\/p>\n
Then, PlanB appeared to hint that four-year periods the time between each reduction in the new Bitcoin supply could continue to boost performance.<\/p>\n
Further, cryptographer Nick Szabo added, the susceptibility of traditional instruments to react to government and central bank meddling in currency markets meant Bitcoin was a natural fit for long-term, or low-time preference, investors.<\/p>\n
PlanBs price model, stock-to-flow, has correctly called much of Bitcoins historical behavior and continues to forecast a level of $100,000 for BTC\/USD in 2021.<\/p>\n
At current levels, markets continue to conform to stock-to-flow, at $8,300 trading just below its suggested range. Before the next halving in May, $8,300 is, in fact, the average price the model says Bitcoin will trade at before moving significantly higher.<\/p>\n
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\nBitcoin Risk-Return a Different Beast Compared to Amazon: Analyst - Cointelegraph<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"