Bitcoin Risk-Return a 'Different Beast' Compared to Amazon: Analyst

Publié le by Cointele | Publié le

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Bitcoin's risk-return is a "Different beast" compared to even the darling of the stock market of the 2000s, Amazon.

PlanB: Amazon "Normal" compared to BTC. 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.

Amazon's significant losses in the year 2000, combined with its revered recovery ever since still keeps it far below Bitcoin's risk-reward ratio.

"Bitcoin is a different beast!" PlanB summarized, describing Amazon's position on the chart as "Much closer to normal."

Bitcoin risk-return vs. major investments.

The impressive contrast comes days after Cointelegraph reported on Bitcoin's risk-adjusted returns outperforming every major investment offering based on a four-year investment.

PlanB appeared to hint that four-year periods - the time between each reduction in the new Bitcoin supply - could continue to boost performance.

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.

PlanB's price model, stock-to-flow, has correctly called much of Bitcoin's historical behavior and continues to forecast a level of $100,000 for BTC/USD in 2021.

Before the next halving in May, $8,300 is the average price the model says Bitcoin will trade at before moving significantly higher.

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