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

Tuesday, February 14, 2023

Bitcoin As A Way to Transfer Risk

 


Bitcoin's price is currently more volatile/risky than the stock market prices of the largest listed blue chip corporations part of the main indices in the USA, more risky than middle capitalisation stocks' prices.

Bitcoin's price volatility can be most directly compared/most akin to small capitalisation technology stocks.

In view of the above, investment banks, asset managers, hedge funds and slowly, but surely pension funds  and endowments can transfer risk by investing in Bitcoin and other cryptocurrencies, which are even more volatile than the flagship Bitcoin cryptocurrency's price.



Thus institutional investors can package, 'can', repackage risk and even sell it down the curve via Bitcoin and crypto.

In short, Bitcoin and crypto enable investors to move along the risk curve, which is extremely valuable.




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