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"Still, anyone expecting Bitcoin to provide a haven from turbulence in global markets will have been disappointed." No judgment on the future of cryptocurrenci
by krig 8y ago
"Still, anyone expecting Bitcoin to provide a haven from turbulence in global markets will have been disappointed."
No judgment on the future of cryptocurrencies (I'm not prescient), but wouldn't you have to be incredibly naive to think that bitcoin or ethereum would be stable, either in the long or short term? If nothing else, this is a space that is so new that a lot of countries haven't even had time to figure out how to legislate around it.
- Nursie 8y agoIt had been one of the cryptocurrency promoters' talking points for some time. BTC and Ether were supposed to be a store of value, and some pointed to research that showed a lack of correlation between general market movements and valuations in the cryptocurrency space, arguing that this made it a good hedge. The extreme volatility would seem to count against that idea though.
- dlubarov 8y agoThe volatility isn't a problem if crypto is a small part of a diversified portfolio, though. In theory, if a portfolio has many small investments in volatile but uncorrelated assets, the overall portfolio won't be volatile. I haven't done any empirical analysis, but I wouldn't be surprised if investing 1-2% of a portfolio in crypto actually reduced its risk.