Bitcoin’s risk-adjusted performance continues to stand out against gold, even amid periods of extreme volatility. This has raised questions about the traditional role of gold in investment portfolios.
Year-to-date, gold has risen 39% compared to Bitcoin’s 19%, but historical cycles suggest that BTC may deliver far superior performance when accounting for risk.
Bitcoin’s Risk-Reward Profile
During the 2017 bull market, Bitcoin surged roughly 1,300%, and produced a Sharpe ratio of 1.4 despite extreme price swings, while gold’s 13% gain over the same period yielded a Sharpe ratio of just 0.8. Similarly, in the 2020 cycle, Bitcoin climbed 214% in the second half of the year, versus 7% for gold. BTC’s Sortino ratio exceeded 3.0 in that period and indicated its ability to generate outsized gains relative to negative price movements.
Gold, by comparison, maintains more consistent but lower risk-adjusted returns, according to the latest findings shared by Michael Nadeau of ‘The DeF
We współpracy z: https://cryptopotato.com/sharpe-vs-sortino-the-data-proving-bitcoin-outperforms-gold-despite-volatility/
