Bitcoin remains the most profitable asset of 2020
CONTENT

  • Bitcoin is recognized as the most profitable asset

  • Gold gave way to bitcoin leadership in asset returns

  • Oil showed negative profitability

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Bitcoin has become the most profitable investment asset since the beginning of the year, overtaking gold, the NASDAQ index, and US bonds by a wide margin. Oil became an outsider, which dropped significantly in 2020.

Bitcoin remains the most profitable asset of 2020

More expensive than gold and oil

According to the Cryptowatch resource, bitcoin became the most profitable investment asset this year, showing a 44% rate of return. By this indicator, the crypto coin has overtaken gold, the NASDAQ index, US bonds and other markets..

Source: Cryptowatch

Since the beginning of the year, bitcoin has tested the low in the $ 3800 area and climbed to the price top at $ 12,500. And yet, despite the price fluctuations, the coin met the expectations of the holders.

The founders of the Gemini cryptocurrency exchange, brothers Cameron and Tyler Winklevoss, are confident that this is not the limit and Bitcoin can rise in price to $ 500 thousand per coin.

Why This Is The Most Profitable Asset You Can Have Today

They call Bitcoin an even more limited asset than gold, which has also skyrocketed since the start of the coronavirus pandemic..

“Today, the market capitalization of overground gold is conservatively estimated at $ 9 trillion. If we extrapolate the trajectory of gold movement to Bitcoin, it turns out that the cryptocurrency is undervalued by about 45 times. This means that the value of the coin could rise to $ 500,000, ”said the Winklevoss brothers..

To predict the price of bitcoin, experts often compare it with gold, which also showed stable growth until the end of August. The precious metal has risen in price by 29% since the beginning of the year.

Gold proved to be a defensive asset during the crisis, but the lack of support from investors led to a fall in the value of the asset. The price of gold fell to $ 1907 per troy ounce, although in August the price of the precious metal reached a record value of $ 2046.

Given the clear correlation with the precious metals market, a decline in the value of gold may negatively affect the MTC rate.

Investing in oil is at a loss

At the beginning of this year, prices for oil futures fell below zero for the first time in their history. Bitcoin (BTC) reacted to the price war between Russia and Saudi Arabia with a rapid drawdown. This behavior of cryptocurrency may mean that it is not yet mature enough to be considered a hedging instrument against uncertainty..

At the end of 9 months of this year, oil was recognized as the most unsuccessful investment and shows negative dynamics of profitability.

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