Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Wednesday, December 14, 2022

Crypto's Risk


 

The risk of Bitcoin and other major cryptocurrencies is considered high.

And yes, if measured by standard deviation or volatility Bitcoin is riskier than the major stocks and even smaller capitalisation stocks.

However, Bitcoin exhibits jump like upward optionality. Translation - even when risk taken into account, Bitcoin and other major cryptocurrencies seem undervalued.



The main reason for the higher risk of Bitcoin and other crypto is the lower liquidity in the cryptocurrencies market compared to US common stocks.

However, higher risk is usually associated with higher opportunity.




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