Market Cap
24h Vol
7054
Cryptocurrencies
82730
Markets
Cryptopolitan
2020-01-26 19:03:18

Bitcoin Sharpe ratio greater than 1, says PlanB

PlanB, the renowned Bitcoin commentator, has claimed that the Bitcoin Sharpe ratio is greater than one. Now, this is a rare feat to achieve in the crypto realm. As per PlanB, this is the only digital asset displaying such characteristics. Technically, the Bitcoin Sharpe ratio defines the increasing rate of return due to heightened volatility experienced while holding a risky asset class. The eternal ‘Risk vs. Reward’ debate is centered on such parameters. The Bitcoin Sharpe ratio carries importance because most people rely on such simple statistical data to gauge an asset’s return. PlanB states that over time, the Sharpe