RATE Group | Bitcoin Sharpe ratio greater than 1, says PlanB
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Bitcoin Sharpe ratio greater than 1, says PlanB

27 Jan Bitcoin Sharpe ratio greater than 1, says PlanB

Posted at 02:28h in Bitcoin News by

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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 ratio for BTC has improved so much as to classify it as an investment-worthy asset.

Understanding Bitcoin Sharpe ratio: What it means

Bitcoin Sharpe ratio can be better understood by comparing two assets over some time: one with minimal risk and the other with substantial risk attached to it. For example, a United States Treasury bill can be…

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