This article talks about two things - Bitcoin and Nvidia. They are both things people can buy to make money. But sometimes, they go up and down a lot, which can make people feel scared. So the article looks at how much money people can make with each of these things, taking into account how much they can go up and down. It turns out that, this year, Nvidia has been a better choice for making money, compared to Bitcoin. Read from source...
lack of clarity of the different sections of the article on what time frames were taken into consideration for comparison of Bitcoin and Nvidia. Lack of a proper risk management strategy highlighted by the example of Bitcoin's negative Sharpe ratio. Irrational argument made about Nvidia's growing appeal as a high-returning investment. The effect of market sentiments and emotions over logic and data were highlighted by the case of Bitcoin's sharp correction and Nvidia's better recovery. It was further criticized for having a one-sided perspective of the issues and ignoring fundamental analysis, technical analysis, and broader market conditions.
bearish
Reasoning: The Bitcoin investor's excess return for enduring higher volatility, measured by the Sharpe ratio, was negative, suggesting the expected return was lower than that of a risk-free investment. On the other hand, NVIDIA showed a Sharpe ratio of 2.29, highlighting a better risk-adjusted performance. While the AI-based stock has recovered faster from the recent dip, Bitcoin is struggling to keep up. This paints a bearish picture for Bitcoin investors.