Bitcoin, a better investment option than gold now? A Sharpe look says…

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World's largest cryptocurrency Bitcoin [BTC] outperformed mainstream financial instruments of the market in risk-adjusted returns..

According to crypto-market data provider Kaiko, Bitcoin’s Sharpe Ratio was higher than Gold’s and that of other key equity and commodity markets in early April.The Sharpe ratio is a widely used metric in finance, measuring the risk-adjusted returns on a financial instrument. Put simply, it comparesTypically, a Sharpe ratio of one or higher is considered a good risk-adjusted return rate. In the aforementioned graph, Bitcoin’s Sharpe ratio is around four.

Finally, according to AMBCrypto’s analysis of Glassnode’s data, Bitcoin wallets with non-zero balances have grown sharply in recent years, implying confidence in the asset’s long-term potential.Aniket Verma works as a journalist at AMBCrypto. Contrary to most who are primarily interested in merely tracking price movements of cryptos, his focus is on examining the niche intersection between cryptocurrencies and traditional finance.

 

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