Bitcoin is the best Investment of the last decade. No other asset could be currencies in the period from 2010 to the end of 2019 as strong performing as the number 1 of all Crypto. After the new decade resulted in part of the corona crisis for global turmoil, now and again an old familiar image: BTC recovers and exceeds both the stock market as well as Gold.In this article, we want to throw again a look at the YTD Performance of Bitcoin, the S&P500 and Gold. We also want to talk a little bit about the traditional 4 asset classes.
Contents
Bitcoin, S&P500 and Gold in the YTD comparison
At the Start of the article, we want to look at the Year-to-Date (YTD) Performance of the just-mentioned asset classes. To this end, we begin with the S&P500 in the period from 01.01.20 – 01.05.20:We can see in the above Chart that the stock index S&P500 has a current YTD Performance of -13.14%. So he has recovered significantly from its provisional high for the year low point, which was around -32%, but still significantly in the red.
Gold: the profiteer of the current corona crisis?
How is it looking now with the precious metal Gold? – Has Peter Schiff is right and we should now buy all the Gold?We see clearly that Gold could just say in the current times of crisis, its role as a Store of Value. We see that the volatility was during the Crash in mid-March, significantly lower than the stock market. The price of gold lost in the Peak of just 4 per cent. On the other hand, we see that the unrest has moved the market a lot of investors to purchase the scarce precious metal.Trade on the worlds leading Social Trading platform!Join the millions of people who have already discovered how it smarter to invest by copying the best investors in our Community, or be copied and as a result, a second income can be achieved. Start now!
Bitcoin as the best Investment to 2020
We come now to the final for the digital Gold: Bitcoin. How is his Performance in 2020?Also this Chart is very clear. It shows the massive differences between Bitcoin and Gold. This is illustrated by the crash behavior of BTC. While Gold is true for the majority of investors as a safe haven, and therefore, in percentage terms, only marginal losses in mid-March, once the corners have suffered Bitcoin is much more distinct under the sell-through and the uncertainties in the financial market. The often cited volatility of BTC has hit again best part. We see that Bitcoin is significantly more dynamic and much more quickly from such crises can recover. This is currently not clear. As the above Chart shows that BTC is listed with a current market value of around 8,800 USD approximately 22% above the value at the beginning of the year.It is clear that Bitcoin is very different from the traditional Assets. Among the 4 major asset classes of equities, bonds, commodities and currencies. All the 4 asset classes are correlated to a certain part of to each other. Even if Bitcoin was correlated during the crash strongly with the traditional financial market, we see that it is slowly coming back to a decoupling. On a long-term point of view, the Figures confirm this fact as well. So BTC is not only the best Investment in 2020, but also the optimal complement to the existing Portfolio. So the crypto currency no. 1 is maybe not a Hedge against a global economic crisis, but a good Hedge against Hyperinflation, and persistent low interest rates.
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