Goldman Sachs has ranked bitcoin as the best performing asset so far this year. The crypto-currency also topped the global investment bank’s list of assets with the best risk-adjusted returns, ahead of gold, real estate, the S&P 500 and the Nasdaq 100.
Bitcoin beats other investments on Goldman chart
₿REAKING: #Bitcoin is the best performing asset in the world this year, according to latest data by Goldman Sachs pic.twitter.com/vh7f7UIloi
— Documenting ₿itcoin 📄 (@DocumentingBTC) January 23, 2023
Global investment bank Goldman Sachs has reportedly ranked bitcoin as the best performing asset year-to-date (YTD). The Twitter account Documenting Bitcoin tweeted earlier this week:
Bitcoin is the world’s best performing asset this year, according to the latest data from Goldman Sachs.
The tweet includes a market performance chart by Goldman Sachs showing the total returns of the top 25 markets as well as their risk-adjusted returns year-to-date.
Bitcoin tops the list of total returns with 27%, followed by the MSCI Emerging Markets Index with 8%. Bitcoin also tops the Goldman Sachs risk-adjusted returns list, with a Sharpe ratio of 3.1. The price of bitcoin has risen since the firm released its chart. At the time of this writing, BTC is trading at $23,130, up more than 39% year-to-date.
Gold, to which many people have compared bitcoin as a store of value and a hedge against inflation, has ranked several places below it. Bitcoin is on both the total return and risk-adjusted return lists. B’OR has a year-to-date total return of 6% and a Sharpe ratio of 2, according to Goldman’s chart. A higher Sharpe ratio indicates that the investment has produced higher returns for a given level of risk.
However, Goldman Sachs said in December of last year that gold was a better “portfolio diversifier” than gold because it is likely to be less influenced by tightening financial conditions. In addition, the bank’s analysts believe that gold has developed non-speculative use cases while bitcoin is still looking for one.
Goldman Sachs has been in the crypto space for several years. The company officially established a crypto-currency trading desk in May 2021. In January of last year, the investment bank predicted that Bitcoin could reach $100,000 as the crypto continues to take market share from gold. Last year, Goldman Sachs executed its first over-the-counter crypto trade, offered its first bitcoin-backed loan and launched a data service to help investors analyze crypto markets.