{"id":139127,"date":"2024-10-08T21:30:30","date_gmt":"2024-10-08T18:30:30","guid":{"rendered":"https:\/\/cryptodnes.bg\/en\/?p=139127"},"modified":"2024-10-08T16:28:04","modified_gmt":"2024-10-08T13:28:04","slug":"bitcoin-performs-better-than-gold-but-volatility-continues-to-be-a-problem","status":"publish","type":"post","link":"https:\/\/cryptodnes.bg\/en\/bitcoin-performs-better-than-gold-but-volatility-continues-to-be-a-problem\/","title":{"rendered":"Bitcoin Performs Better Than Gold, but Volatility Continues to be a Problem"},"content":{"rendered":"
According to Goldman Sachs, while Bitcoin\u2019s performance is enviable, it does not adequately compensate for its volatility. This ratio reflects how much return an investment generates relative to its risk or volatility, with gold achieving a 28% increase in total return.<\/p>\n Interestingly, the only other investments with a lower return-to-volatility ratio than Bitcoin, as outlined in Goldman\u2019s October 7 report titled \u201cOil on the Boil<\/em>,\u201d are Etherium\u2019s native token, ETH, Japan\u2019s TOPIX index, and the S&P GSCI energy index. This relatively low risk-adjusted score supports the long-held view of crypto skeptics, who argue that Bitcoin\u2019s volatility prevents it from serving as a haven asset like gold.<\/p>\n
\nThe ratio between Bitcoin\u2019<\/strong><\/a> s year-to-date return and its volatility is less than 10%, which is significantly less than gold\u2019s best risk-adjusted return of nearly 20%.<\/p>\n