Bitcoin (BTC) and Ethereum (ETH) have been the best risk-adjusted assets last year based on the Sharpe ratio.
By for the data processing company IntoTheBlock:
“The Sharpe ratio is one of the most commonly used metrics in traditional finance to assess an asset’s risk-return performance. Comparing the risk-adjusted performance of encryption with Tech Stocks, ETH and BTC have been the best risk-adjusted assets over the past year. “
The Sharpe ratio is used to estimate the return on an investment in relation to its risk. It shows how much extra return an investor receives from the extra volatility that lasted in the possession of more risky assets.
The higher the ratio, the higher the return on investment depending on the size of the risk and the better the investment. Ethereum recorded the highest Sharpe ratio at 0.17, followed by Bitcoin at 0.14.
Despite the recent market crash, BTC and ETH have enjoyed significant bull times that allowed them to reach all-time highs this year. Bitcoin, for example, rose to a record high of $ 64.8 thousand in mid-April, while Ethereum broke the record by $ 4,350.
Demand for real estate in El Salvador has grown since it introduced Bitcoin
Earlier this month, El Salvador fire the first nation to introduce Bitcoin as a legal tender that is expected to boost the country’s economy.
As a result, there has been a demand for real estate in El Salvador increased based tremendously on Google trends.
On the other hand, Dante Mossi, CEO of CABEI, a leading Central American bank, naked that the bank is working with the Central Bank of El Salvador and the Ministry of Finance to select a team to implement BTC’s legal tender.
Meanwhile, ‘millionaire’ Bitcoin whales accumulated an additional 90,000 BTC in the last 25 days. BTC whales have 100 to 10,000 bitcoin holders.
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