Bitcoin isn't as volatile as it seems: 5-year risk-reward mirrors gold, says Mudrex CEO
Mudrex, addressed a gathering of traders and financial experts, challenging the common perception of Bitcoin's volatility. He highlighted that Bitcoin’s risk-to-reward ratio is similar to that of Gold and S&P 500, making it an attractive long-term asset for investors.
«Bitcoin is not as volatile as people think. Its volatility has been decreasing steadily with the rise of institutional and retail adoption,» Patel stated. He noted that while traditional indices like NIFTY 50 have outperformed Bitcoin in terms of the Sharpe ratio (a measure of risk-adjusted returns) over the same period, Bitcoin remains a valuable addition to long-term investment portfolios.
Patel further emphasized that successful crypto investments, like any other financial venture, require thorough research and a well-thought-out approach. He recommended using Financial Intelligence Unit (FIU)-compliant exchanges and encouraged portfolio diversification to manage risk effectively. He also cautioned against falling for speculative «get-rich-quick» schemes, which can lead to financial losses.
In his address, Patel also highlighted the importance of staying updated on emerging regulations and ensuring compliance with tax obligations to safeguard investors' legal
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