Investing in Bitcoin: An Old Game with a New Star

The first analysis reveals that Bitcoin’s performance varies broadly with different currencies.

This year, the gap in profitability has reached more than 35%.

Bitcoin experiences the same dynamics as gold, oil, and stocks when measured against fiat coins.

Are there gaps between different currencies when investing in Bitcoin?

This question is becoming recurrent as the market adopts Bitcoin as an asset within any portfolio that aspires to achieve Beta against the market average.

For this analysis, I have plotted Bitcoin against the world’s main currencies.

The first thing that stands out is that when valuing Bitcoin in yen. Contrary to BTC’s euro or dollar valuations – where the trough was in December – yen hit the lows only on February 8th.

Sterling also lagged behind. Bitcoin’s bottom in British pounds was reached in January.

Another interesting highlight refers to returns. The euro is the worst performer against Bitcoin since December. Holders of the common currency that bought Bitcoin at the bottom have accumulated a whopping 176.88% profit due to the euro’s decline. At second place we find the USD which returned 173.61% from the low point. The Canadian Dollar comes third, with a still impressive profit of 168.47%.

Lower down the profitability list we find the Japanese yen with 154.69% and the pound with a mere 140%.

It will be interesting to re-examine the scoreboard at the end of the current bullish cycle and see if the differences in profitability persist on the long side of the yield curve.

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