[2020-12-08] Bitcoin: Less Volatile than Most of the S&P 500 Companies?

[S3cco]

Bitcoin: Less Volatile than Most of the S&P 500 Companies?
https://bitcoingarden.org/bitcoin-less-volatile-than-most-of-the-sp-500-companies/

Bitcoin has a bad name for being overly volatile, but it is a sea of calm when compared to S&P 500 stocks, says investment management firm VanEck.

Many see Bitcoin as not only a convenient form of payment that is future-friendly but as a wise long-term investment. But, deep down, everybody knows that its price is intrinsically volatile, and even if it gets significantly bigger, its core level of volatility is not going to fall.

However, VanEck compared Bitcoin to S&P 500 companies and found that the cryptocurrency was less volatile than 172 stocks of the S&P 500 companies in a 90 day period. Last year, Bitcoin exhibited lower volatility than 145 stocks in the index.

According to VanEck, traditionalists have always criticized Bitcoin among all other cryptocurrencies for its volatility and decentralized nature. But the firm believes that one should study the market before making any revelations about it. Cryptocurrency is a complex asset and needs proper understanding of how things are dealt with here.

The firm said that investors and enthusiasts might get surprised about knowing that there are some major assets that have been acting more volatile than Bitcoin in recent times....

[nutildah]

This is interesting except for the Van Eck report was released in August... Why make a story about it now?

[bbc.reporter]

I am shaking my head. Was VanEck telling everyone that more than 100 stocks' volatility in the S&P 500 are bad or are they making it appear that bitcoin is normal because more than 100 stocks are more volatile?

We should see the list of those stocks. Bitcoin is different because exchanges give everyone more than 10x leverage. Brokers of stocks are more regulated, I reckon.

[buwaytress]

Not sure volatility is necessarily a "bad name". Isn't the main reason most new people coming into Bitcoin all about volatility? You don't want to invest or speculate in stablecoins now, do you?

Anyway, clickbait headline for old news strewn with cherry-picked data. What else is new?