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RE: Blockchain – Beyond Bitcoin (Part 5) Investments and Insurance
Bitcoin is also the perfect portfolio asset: no correlation to stocks, bonds, or real estate, and (thus far) high average returns:
Bitcoin is also the perfect portfolio asset: no correlation to stocks, bonds, or real estate, and (thus far) high average returns:
The more stable the price becomes the better an investment as part of a balanced portfolio. Volatility kills making it part of a portfolio of assets for most investors. It has little correlation to other key economic drivers so it may work out as a good hedge to traditional investments.
I think long term it will be traded more and more as a store of value and less and less as a pump and dump stock. 2016 has been a very stable year for Bitcoin. What will 2017 bring????
Look at this beautiful collapse in volatility:
https://btcvol.info/
Vol can surely spike at any point in the future, but it has been collapsing since about 2014.
Very interesting. It's definately on a good path. If you include any of the traditional investments in that graph gold, euro etc the volatility of bitcoin is even less for periods. There are still spikes though but I hope it won't be long until it has a consistent stable price. That would be encouraging for more widespread adoption.
Definitely agree, lower volatility will spur greater adoption and greater adoption could spur lower volatility...