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Clz131322Jane
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Joined: Fri May 04, 2018 4:33 am

What do we learn from the famous player about investing cryptocurrency?

Tue May 08, 2018 4:02 am

As we all know, nowadays, the players of cryptocurrency is about 3.4% of world’s population. And of course more and more investors are attracted to into it.
One of the big fans from China, where cryptocurrency and blockchain are developing fast and fast, Dong,Zhao, the founder of DFound has said that we (fans of cryptocurrency) have to invest in Bitcoin(BTC) but we can’t all in. He made an assume that if Bitcoin rise up to 100 times and down to 0, both of which rate is the same, 50%, then the Sharpe Ratio of investing bitcoin is 50%*100=50. Even though there is 10% chance of Bitcoin rising up to 100 times, investing Bitcoin is cost-efficient, as the Sharpe Ratio is 10%*100=10. So he believed in which an investor can go into Bitcoin but cannot all in.
Though the other cryptocurrency at the top 100, such as Ethereum, Ripple, Bitcoin-cash and Tron, are developing and their price are rising up quickly, the players still need to be careful to into it. At the same situation, Dong Zhao instated that he would invest Bitcoin cash even though he doesn’t take a good view on it.
What should the players do? I think it’s important to listen from all kind of voices and take more suggestions from the authoritative forum, so that players get exactly what they want. How about you?

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