Crypto Is An Uncorrelated Asset Class
What’s this purple line?
Can you guess now?
It’s digital and the axis at 100,000 isn’t enough
How about 1 million? No.
It has grown in value by almost 65,000x
- In December 2010, 1 BTC = US$0.30
Remarkable performance even if we rebase starting from when daily volume >US$1bn
- Let’s be a bit more realistic and start looking at Digital when there was more significant volume
- We rebase Bitcoin to July 2017 when it traded at about US$2,900 and daily volume was mostly >US$1bn
Digital is an uncorrelated asset class
- Stocks and commodities move together
- Stocks and US$ move opposite
- US$ also moves inversely to commodities and gold
- Gold is a good diversifier
- Digital, hence cryptocurrencies, is uncorrelated
DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.