Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Goldman Sachs Ranks Bitcoin Best Performing Asset So Far This Year – Markets & Prices Bitcoin News
Goldman Sachs has ranked bitcoin as the most performing asset so far this year. The cryptocurrency also tops the global investment bank’s list as the asset with the highest risk-adjusted return – above gold, real estate, the S&P 500 and the Nasdaq 100.
Bitcoin outperforms other investments on Goldman’s chart
Global investment bank Goldman Sachs has reportedly ranked bitcoin as the best asset year-to-date (YTD). The Twitter account documenting Bitcoin tweeted earlier this week:
Bitcoin is the most efficient asset in the world this year, according to the latest data from Goldman Sachs.
The tweet includes a market performance chart by Goldman Sachs showing the top 25 markets’ total returns as well as their risk-adjusted returns so far this year.
Bitcoin tops the total return chart at 27%, followed by the MSCI Emerging Markets Index at 8%. BTC also tops the Goldman Sachs risk-adjusted returns list, with a Sharpe Ratio of 3.1. The price of bitcoin has risen since the firm published the chart. At the time of writing, BTC is trading at $23,130, up more than 39% so far this year.
Gold, to which many have compared bitcoin as a store of value and a hedge against inflation, ranked several places below BTC on both the total and risk-adjusted return list. The metal has a total return of 6% so far this year and a Sharpe Ratio of 2, according to Goldman’s chart. A higher Sharpe Ratio indicates that the investment has produced a higher return for a given level of risk.
However, Goldman Sachs said last December that gold is a better “portfolio diversifier” than BTC as it is likely to be less affected by tighter economic conditions. Furthermore, the bank’s analysts believe that gold has developed non-speculative use cases while bitcoin is still looking for one.
Goldman Sachs has been in the crypto space for several years. The firm formally established a cryptocurrency trading desk in May 2021. Last January, the investment bank predicted that BTC could reach $100,000 as the crypto continues to take gold’s market share. Last year, Goldman Sachs conducted its first OTC crypto transaction, offered its first bitcoin-backed loan and launched a data service to help investors analyze crypto markets.
Do you think bitcoin will continue to be the most performing asset this year? Let us know in the comments section below.
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