Bitcoin’s Risk and Return Explained in 7 Amazing Charts (That You’ve Never Seen Before)

A finance professor explains how Bitcoin has really performed relative to the stock market

Photo by Harrison Kugler on Unsplash

Chart #1: Bitcoin’s Incredible — and Bumpy — Rise

Chart #2: Bitcoin’s Path Compared with Traditional Investments

Chart #3: Bitcoin Return-and-Risk Compared with Traditional Investments

Chart #4: Bitcoin’s Correlation with Traditional Investments

Chart #5: Bitcoin Price Changes Compared with a Normal Distribution

Chart #6: Bitcoin Price Changes Compared with Nasdaq in the Dot-Com Bubble

Chart #7: Bitcoin’s Volatility Over Time

Key Take-Aways

Appendix: Data Details

I’m a Finance prof, CFA, and author of In Pursuit of the Perfect Portfolio (with Andrew Lo). I write stories about investing. (I don’t give financial advice.)

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