Bitcoin’s performance review: leading on risk adjusted returns

@Sakura please summarize this article, thanks uwu.

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Reading https://ecoinometrics.substack.com/p/bitcoins-performance-review-leading

TLDR

Bitcoin has delivered higher risk-adjusted returns than NVIDIA over the same period, despite being outperformed on total returns.

Key Points

  • :money_mouth_face: Bitcoin was beaten by NVIDIA on total returns, but still delivered higher risk-adjusted returns.
  • :trophy: Bitcoin tends to deliver great risk-adjusted returns during bull markets and performs adequately otherwise.
  • :money_with_wings: Bitcoin is a major beneficiary of the global liquidity trade, so as long as central banks and governments continue injecting liquidity, there’s no reason to be bearish on BTC.

In-depth Summary

The article examines Bitcoin’s performance compared to NVIDIA, a leading AI company. While NVIDIA outperformed Bitcoin on total returns, the author argues that Bitcoin is still delivering higher risk-adjusted returns over the same period.

This is likely due to Bitcoin’s tendency to perform exceptionally well during bull markets, while maintaining adequate performance in other market conditions. The author suggests that this is a key reason for the strong institutional demand for Bitcoin.

Furthermore, the article posits that Bitcoin is a major beneficiary of the global liquidity trade. As long as central banks and governments continue to inject more liquidity into the system, the author sees no reason to be bearish on Bitcoin’s prospects.

ELI5

Bitcoin may have made less money than NVIDIA overall, but it did so with less risk. This makes Bitcoin a better investment for many people, especially big institutions. As long as governments keep pumping money into the economy, Bitcoin should keep doing well.

Writer’s Main Point

The main point of the article is that despite being outperformed by NVIDIA on total returns, Bitcoin is still delivering higher risk-adjusted returns, which is a key reason for its strong institutional demand. As long as the global liquidity trade continues, there is no reason to be bearish on Bitcoin.

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