Mike Magellan: Cryptocurrencies such as Bitcoin have underperformed the Nasdaq 100 Index in the past decade

Bloomberg senior analyst Mike Magellan pointed out that from a risk and portfolio management perspective, Bitcoin and other cryptocurrencies have performed poorly in the past decade. The Market Vector Digital Asset 100 Index has been mostly sideways since 2017, while the Nasdaq 100 Index has continued to rise during the same period. The average volatility of the Market Vector Digital Asset 100 Index is about three times higher than that of the Nasdaq 100 Index, and it is positively correlated with the stock market, failing to provide effective risk diversification. (Source: Bloomberg)