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Bitcoin (BTC) is anything but a hedge

What is a hedge? Here is how the definition goes: Investment position intended to offset potential resources or games that may be incurred by a companion investment In short when you do a hedge investment, you do any investment to minimize your loss or to reduce the risk involved in an investment. In a hedge investment, there are different portfolios of investments down with high risks and some with low risks and thus the overall risk is minimized.

The measurement of the volatility or the risk of an investment is done by the standard deviation. The most volatile and risky investment can have the standard deviation of around the 20 marks while less risky and less volatile ones have the standard deviation of around the 90 marks. The situation gets trickier when it comes to Bitcoin (BTC). Trust me when I say that the Bitcoin (BTC) is three to four-time riskier and more volatile than the most volatile investment.

So Bitcoin (BTC) can be called anything but a hedge because the purpose and motive of a hedge is to reduce the risk involved in the portfolio but Bitcoin (BTC) will not work any step closer in the direction of reducing the risk and volatility involved in the investment but it will for sure increase the risk in the investment. Whey u deal and trade in Bitcoin (BTC) remember that you are dealing in the riskiest investment that can be.

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About Steve Anderrson

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates:

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