Bloomberg: Cryptocurrency Cannot be Compared to Past Traditional Classifications of Assets
According to the findings by the Bloomberg, the course of Cryptocurrency has increased in volatility and the correlation that the trading activity. The Bloomberg article that was edited and appeared in 2nd may, it was stipulated that the past performances of the cryptocurrencies show no guarantee that the future performance of these currencies will be guaranteed. Bloomberg has noted that Bitcoin and to generalize, the cryptocurrencies appear to have an extensive volatility in the context that they are currently being disregarded as convenient sources of payments for the salaries or the stores. The article noted that the investments that are not crypto related have revealed similar volatility in 16 months period. For example, there has been a South African company that faces a scandal in accounting and a Russian bank which is also received an extensive financial bail-out
Making a reflection on the dominance of the Bitcoin, the market capitalization and the volume of trading are exhibited to be both higher as compared to the cryptocurrencies. Comparing to the traditionally traded stocks that have a relative and fair market distribution in the market, the cryptocurrencies have a different market appeal. Bloomberg has cited that the LDJ capital founder named David Drake noting that the trading in the smaller cryptocurrencies needs to be awarded and a fair consideration in a similar way as an early-stage VC investing.
Bloomberg has also made an attempt to chart the relationships prevailing between the cryptocurrencies and the traditional classes of assets. Currently, the Bitcoin can be stipulated to be very weak and the cryptocurrencies tend to move with each other and Bloomberg highlights that offering an exception of the dollar-backed tether. The rest of the cryptocurrencies in the market do not stand to have higher returns through the initial coin offerings (ICO). The higher returns are scribbled due to an increased scrutiny by the government. Since the future is uncertain, the investors are advised to tread in the market with care. After the giant bank Goldman Sachs has been inundated, the bank reported that they will be opening a desk for crypto trading desk to service requests for the service by the clients.