Even though cryptocurrencies are not fraught with governmental and institutional regulations as the case with wall street, it is argued that stocks are more volatile and risky than cryptocurrencies - if you consider the big picture. since its inception, investors have seen more ROI in crypto space compared to wall street even though wall street is more volatile and have big institutional investors.
According to an article in Fortune.com Bitcoin Is Less Volatile Than Stock Market Volatility Index, SEC Chair Says.
Conversely, however ,
A report last week from Citi’s private banking division referred to cryptocurrencies as “the most volatile asset class”—far more volatile than S&P 500 stocks or gold, which for months had largely been humming along, reacting surprisingly little to major news events.
Is the above statement true or another fud from cryptcurrencies haters aka banks and government institutions? I think so because we all have seen even more volatility and loss of ROI from wall street almost every year. Below statement analyzed my assertion about the above report from Citi private banking:
But that all changed this week, SEC chairman Jay Clayton noted in Tuesday’s Senate banking committee hearing. When the Dow swooned 4.6% Monday, it spurred an even more extreme move in the so-called Wall Street fear gauge: the CBOE Volatility Index, also known as the VIX, spiked nearly 116% that day, then rose as much as another 37% Tuesday to its highest point in years—only to end the day down almost 20%. It was the widest swing in the history of the VIX, according to the Wall Street Journal’s market data group. Given that backdrop, the regulators at the Senate hearing downplayed lawmakers’ concerns over Bitcoin’s “extreme price volatility.”
“Just recently the volatility in Bitcoin was not as great as the volatility we’ve seen in other securities, such as the VIX product,” Clayton retorted.
Conclusion: Volatility (high Beta) leads to supernormal profits (and loss too) and I see that a lot in the crypto space and most recently, in wall street too-hence the need for some corrections. However, in terms of investing, I prefer cryptocurrencies because you can start with almost no money (steemit ) and be successful if you work smart.
What do you think? send in your comments, resteem and upvote to send in your support.
See my former post: Why You Should Employ The Rich Man Strategy? (2)
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