Renowned analyst PlanB has sparked debate by claiming that Bitcoin‘s risk-adjusted returns are far superior to those of other assets in the financial sector. According to PlanB, a portfolio consisting of 10% Bitcoin and 90% cash reflects bond-like risks while offering high returns comparable to those of the technology giants in the FAANG group. This statement positions Bitcoin as a complete game-changer in the investment world.
Let’s recall that FAANG represents Meta (formerly Facebook), Apple, Amazon, Netflix, and Alphabet (Google). PlanB provides a significant update for 2023, expanding the 2021 version to take into account events such as the striking ‘crash’ of 2022 and the impacts of NVIDIA.
Since starting at its initial value of $5 in January 2012, Bitcoin has emerged stronger than ever after overcoming various market challenges. PlanB’s chart visually represents Bitcoin’s ability to reach the peak despite market fluctuations.
This data-driven analysis is becoming a powerful tool for investors seeking assets that manage risks similar to traditional bonds while offering returns that can compete with the performance of tech giants like the FAANG group.
As PlanB’s forecasts resonate in the world of finance, Bitcoin emerges as a notable force with its unique risk-adjusted returns. The proposed asset allocation strategy of 10% Bitcoin and 90% cash serves as a strategic mix that reflects the traditional stability of bonds while allowing investors to benefit from the high return potential similar to that of technology giants.