Analyst Who Predicts Bitcoin Will Hit $1 Million Explains BTC’s Advantage Over Amazon
Bitcoin managed to surpass $9,000 once again today. This comes after a few days of a natural correction, as Josh Rager called it.
On the other hand, earlier today, we reported that the markets around the world see falls while the fear of the coronavirus is intensifying all over.
It’s been revealed that the US Equities started the week with a massive sell-off.
All the three major indices are in the red amidst the fear of the coronavirus outbreak, according to the latest reports.
PlanB crypto analyst is popular for a lot of predictions but especially for the one claiming that the most important crypto in the market will reach $1 million over the next decade.
BTC has a massive potential upside
PlanB said that the ratio that’s used to asses risk and reward shows BTC’s potential upside compared to some of the biggest stocks on NASDAQ.
The analyst released a few charts that apply the Sharpe ratio to BTC, Facebook, Amazon, Apple, Google and Netflix, according to the latest info coming from the online publication the Daily Hodl.
This ratio was reportedly created by Nobel laureate William Sharpe and it shows the amount of return that investors could potentially get for enduing the volatility of a risky asset.
PlanB also explained that Bitcoin has a Sharpe ratio greater than 1, which is well above the competition.
#Bitcoin is the only asset with a "Sharpe ratio" > 1 (return>risk)! Classic asset (stocks, bonds, gold) risk & return basically flat. Even FAANG (Facebook, Apple, Amazon, Netflix, Google) .. not even close to btc. Note I skipped bitcoin's first years (2009-2012) and updated data. pic.twitter.com/K2XutIVu10
— PlanB (@100trillionUSD) January 25, 2020
“Bitcoin is the only asset with a ‘Sharpe ratio’ > 1 (return>risk)! Classic asset (stocks, bonds, gold) risk and return [is] basically flat,” he said.
He continued and explained that “Even FAANG (Facebook, Apple, Amazon, Netflix, Google) [are] not even close to BTC. Note I skipped Bitcoin’s first years (2009-2012) and updated data.”
Anyway, at the moment of writing this article, BTC is trading in the green and the most important crypto in the market is priced just a bit above $9,000.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.