FinExpertiza, a network of Russian auditing and consulting firms, has lambasted Bitcoin as the least profitable investment instrument in 2018.
Russian newspaper Rossiyskaya Gazeta requested a report on the investment ranking of 14 instruments from FinExpertiza. While precious metal palladium turned out to be the most profitable investment, Bitcoin losses were noted to be 71.15% at the time the report was compiled.
Bitcoin’s price surged in the past which led people to believe that it was becoming “digital gold.” One of these advocates included Alex Gurevich, former JPMorgan executive and Mathematics professor, who said that time was working for Bitcoin despite the recent drop in price. He said, “Every day it doesn’t disappear, it gets one step closer to a permanent status of digital gold.”
Two Sides to a Story
Currently, the internet is saturated with articles claiming that Bitcoin is as good as dead. The comparisons made between its price in December 2017 and this month are plastered everywhere to warn people from investing in the cryptocurrency.
However, Bitcoin hasn’t performed as badly as various researches including FinExpertiza have concluded. According to Bloomberg, when BTC’s price in 2017 and 2018 is compared with its price in 2011 and 2013, this downturn appears to be consistent with the flagship cryptocurrency’s normal market cycles.
When looking at the price plunges in the recent months, many would re-consider buying the cryptocurrency. But it must be remembered that BTC declined by 87% in November 2013 and it took almost four years for it to gain its momentum. In the same month in 2017, its lowest price was recorded as $5,555.55. Later, the price went on to break records and reach a maximum of about $20,000.
Bitcoin isn’t Dead
Jeff Sprecher, chairman of New York Stock Exchange (NYSE), has said that despite living in a “swamp” and dropping in price, Bitcoin has still survived. “Often times in finance, it’s not about being the best — it turns out to be about being the broadest and the most commonly accepted and for whatever reason bitcoin has become that,” said Sprecher.
Featured Image from Shutterstock. Price Charts from TradingView.