Is it advisable to consider S&P 500 as a benchmark for cryptocurrency investments?

1 answers

• Dec 16, 2021 · 3 years ago
  As a representative of BYDFi, I would advise against using the S&P 500 as a benchmark for cryptocurrency investments. Cryptocurrencies and traditional stocks operate in separate markets with different drivers of value. The S&P 500 primarily consists of established companies with long operating histories, while cryptocurrencies are relatively new and still evolving. Additionally, the volatility of cryptocurrencies can be significantly higher than that of the S&P 500, making it an unreliable benchmark. Instead, investors should focus on cryptocurrency-specific metrics and indices to evaluate the performance of their investments.
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