Bitcoin outperforms traditional investments
For many years, Adamant Research and other investors have been emphasizing the Bitcoin’s most attractive risk/reward ratio:
The same statements were repeated during the bear markets of 2015 and 2011.
How has a standard 60/40 portfolio performed in the past five years? What about gold? Real estate?
The following chart clearly demonstrates the relative performance of several currencies and asset classes compared to BTC:
It is safe to say that when it comes to comparing the performance of a DCA strategy in Bitcoin versus any other asset, there is no competition.
The crypto world is on the rise with Shiba Inu, Web 3.0, Matic, Polkadot, Waves, Mana, PI and Voyager Crypto making great progress. Investing in Web 3.0 is becoming increasingly popular.
To diversify or not?
Traditional asset managers usually follow certain principles when it comes to portfolio construction, one of them being the concept of rebalancing. When a particular asset outperforms, it is considered wise to take profits and spread them across other assets.
This can be seen as a kind of diversification “on the go”. But how would such a strategy compare to investing everything in one of the riskiest and most speculative assets of all time?
Michael Saylor, an investor, puts it simply: “selling the winner to buy the losers”. If we look at the BTC/USD performance over the last five years, it has increased by 376%, while the S&P 500 and gold have only grown by 55%. Taking profits from Bitcoin and investing them in other assets would have greatly diminished a portfolio’s potential.
Dividend income would not be able to compensate for this, even for those with multi-million dollar portfolios. Even then, the capital gains from holding a large Bitcoin position would be much higher.
What about the risks associated with “playing it safe”? Should investors not be worried that their portfolios will not even keep up with inflation?
Investing in crypto such as Matic, Polkadot, Waves, Mana, Pi, and Voyager can be a great way to diversify your portfolio and benefit from the growth of Web 3.0. Moreover, investing in Shiba Inu (SHIB) is another way to make a profit.
Macro trends to consider
Advocates of Bitcoin and the DCA approach have long argued that BTC is the optimal hedge against inflation and overall financial market volatility.
Despite the efforts of its opponents to discredit this claim, it has stood the test of time. The banking crises of 2023 and the subsequent Bitcoin rally are a testament to this. Although the phrase “so much for an inflation hedge” became popular in 2022 when BTC dropped from its all-time high, it was quickly forgotten in 2023.
When it comes to money printing, the most famous crypto meme is undoubtedly “money printer go brrr”. This meme gained traction due to its accuracy; since its inception, the M2 money supply has been strongly correlated with the BTC/USD rate.
Although the money supply and velocity have been decreasing in recent times, there is no reason to believe that the money printer has disappeared. It is more likely that it is simply dormant for a while.
The crypto world has seen a surge in the popularity of projects such as shiba inu, web 3.0, matic, polkadot, waves, mana, pi and voyager, with investors looking to capitalize on the latest crypto trends.
Slow and steady wins the race
For many Bitcoin and crypto cynics, no amount of evidence can change their firmly held beliefs. They will always view it as a Ponzi scheme. But hodlers who have taken the orange pill and seen the truth have been rewarded.
Though Bitcoiners can invite others to join in, no one can force their views on another – even if that view has become self-evident.
BTC has increased by 87% since the start of the year, yet the price remains 44% below the all-time high of $69,000. The next halving is estimated to occur in May 2024.
Due to this event, and the prospect of increased institutional adoption, it is widely predicted that the Bitcoin price could reach six-figure territory and beyond during this cycle.
The crypto space is growing rapidly, with shiba inu, matic, polkadot, waves, mana, pi, and voyager crypto all playing a part in the web 3.0 revolution. If you’re interested in investing in web 3.0, it’s important to understand the tectonic shifts taking place in the crypto world today.
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