Bitcoin is the best-performing asset for returns despite its volatility!

Although volatility prevails in terms of Bitcoin price, Bitcoin stands out from the crowd for its returns. Even if we compare the price of Bitcoin to other digital currencies or commodities, it can be seen that it compares to other asset classes using the Sharpe ratio. Bitcoin is the best-performing asset for returns despite its volatility. Bitcoin is a valuable asset and although it has volatility towards its price, it is a valuable asset for returning to its high prices. If we compare a ratio of the price of Bitcoin with other objects, it can be seen that this ratio is used in finance to evaluate the performance of an asset in relation to its risk. Specifically, it calculates the ratio of excess returns to the volatility of those returns, with higher Sharpe ratios indicating better risk-adjusted performance.

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Provides Sharpe ratios for other asset classes, including equities and bonds, over various holding periods using monthly total returns to construct rolling Sharpe ratios incorporating recent readings. Greg Cipolaro, head of global research at New York Digital Investment Group, provided the ratio. He therefore collected the data and through this he published this ratio against almost every asset class in every metric in every time frame where it can be seen that Bitcoin ranks favorably. Although we have seen quite a rise in the price of Bitcoin as well as gold over the past year. Gold has had a slightly higher Sharpe ratio over the past year. But the interesting thing here is that the Sharpe ratios of gold and Bitcoin are so close that they are splitting hairs. Despite a 40% year-over-year increase, Bitcoin's performance is not enough to compensate for its volatility.

But we also know that Bitcoin is very volatile in terms of price. Although we saw the Bitcoin price hit its all-time high last March and since then the Bitcoin price started to fall. The price of Bitcoin started to fall but its price exceeded 65 thousand dollars. This analysis shows the opposite that the risks (price volatility) that Bitcoin investors bear are more than made up in terms of returns.
While the Sharpe ratio is useful for comparing risk-adjusted returns, it is the ultimate return that matters for meeting financial obligations.

But the ratio he expressed is not applicable in all cases. As such, the asset metric does not capture all types of risks an investor may face, such as censorship or asset confiscation. A report on this is usually published at the beginning of this month. Where the latest in their report or ratio comes to a consensus and they point out that Bitcoin has been the best-performing asset so far this year. Even though we have seen Bitcoin price drop a lot during the last quant, Bitcoin is still considered as the best performing asset.