The founder of Morgan Creek Digital Assets disclosed on Twitter today that holding 99 percent cash and 1 percent Bitcoin (BTC) in the last 10 years was a better investment choice compared to the biggest stock market bull run in history.
Anthony “Pomp” Pompliano echoed PlanB’s shrewed review, even remarking that he anticipates digital currency to outperform stocks in the next ten years as well.
1% #bitcoin + 99% cash allocation beats S&P500 over last 10 years:
– higher return
– lower risk (!)
– better risk/return, raroc etc
– including: 3x bitcoin "crash" -80% (2011, 2014, 2017)
– note: last 10 yrs was great for S&P500 (no -40% like 2002, 2008)#asymmetricbet #arbitrage pic.twitter.com/WQc1kt3RWO— PlanB (@100trillionUSD) January 21, 2019
Better RTR Ratio
In a tweet, PlanB stated that just a percent investment into bitcoin and 99 percent cash portfolio has outperformed the S&P 500 during the last decade – a period of time when prices soar on a financial market, otherwise referred to by finance experts as a “bull run”.
According to PlanB, although bitcoin only outperformed the index by just a small percentage, the fact remains that crypto has a better risk-to-return ratio, though it has had its share of extreme bear markets many times and remains in its longest one ever, as of this posting.
Price discovery stage
Market players analyze the recent declines in the virtual currency and stock markets via the same scope and estimate a bitcoin bull run similar to those stock market traders enjoyed up to now. However, there are key contrasting distinctions to be wary about.
For instance, research has shown that the latest crypto surge was hugely sparked by price exploitation which was magnified, to some extent, by investor reactions and the press itself. Furthermore, the availability of ready-to-download software like ‘Quatloo Trader’ allows investors to easily alter market prices.
Tackling the emergence of the crypto digital wave, Mark Yusko, Pompliano’s co-worker and boss said that the landscape that surrounds bitcoin is undoubtedly erratic, as bitcoin and its key counterparts are supposedly in what analysts call a “price discovery” stage.
Underscoring his company’s enduring fascination with digital money, Yusko later on asserted that crypto cash, like the popular bitcoin, will make huge returns, especially in a long-term projection.
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