All you VC Funds out there, hope you are paying attention...
What if you could invest say 10% of your investible capital into something that could see outsized returns?
And what if these outsized returns happened somewhat regularly in this asset?
Well there are only a couple assets out there that can make that sort of claim and one of them is bitcoin.
Over the last 10 years bitcoin has been the quintessential asymmetrical asset.
Check it out:
Awesome, but what am I looking at here???
Over the last 10 years bitcoin has been one of the best asymmetrical bets out there.
Breakdown of returns over the past 10 years:
- 2 years with a negative return (2014, 2018)
- 3 years with a return between 25-100% (2015, 2019, 2020)
- 5 years with a return greater than 100% (3 of which were also greater than 1,000% returns)
Based on the above data, bitcoin would have yielded returns over 1,000% in 30% of the years and only had negative returns in 20% of the years.
The beauty of asymmetrical returns is that even if there are more losers than winners, the winners are so big that they more than make up for all the losers.
Not only does bitcoin achieve that, but it also has more winning years than losing years, at least historically.
That means it wins more than it loses and it sometimes even sees asymmetrical returns!
I'm not sure about you, but the historical returns should literally be every well diversified portfolio's dream.
It will be interesting to see what the next 10 years brings...
Stay informed my friends.
Posted Using LeoFinance