Bitcoin Was This Year's 'Worst Investment', FinExpertiza Consulting Claims

Francisco Memoria

Researchers from the FinExpertiza Consulting group have recently concluded that bitcoin, the flagship cryptocurrency, was this year’s worst investment, and that palladium, a precious metal used in autocatalysts, was the best.

According to a report published by Rossiyskaya Gazeta, FinExpertiza’s research saw it look into 14 different financial instruments and analyze what would’ve happened to a 300,000 ruble ($4,330) investment into each one of them this year.

If the money was invested in bitcoin, the researchers noted, it would have dropped by over 72.2%, as 213,000 rubles ($3,000) would’ve been lost. On the other hand, if the funds were invested into palladium, the 300,000 ruble investment would’ve increased by 30,000 rubles ($433), or little over 10%.

Nina Kozlova, the general director of FinExpertiza, was quoted as saying:

And if we look in retrospect, for example of two years, we will see that palladium, in general, has become the only metal with a positive return.

Bitcoin notably started the year at roughly $13,400 and has kept on dropping to a low of little under $3,200. This month the flagship cryptocurrency started recovering and, at press time, it’s trading at $3,670.

According to Mati Greenspan, a senior market analyst at eToro, it could still drop to under $3,000 although the $3,500 to $3,000 region is seen as a support zone. The cryptocurrency’s fall notably hasn’t seen development and adoption stop, as earlier this month its layer-two scaling solution, the Lightning Network (LN), surpassed the 500 BTC capacity.

Bitcoin's price drop this year

Last year, bitcoin went from $1,000 to a near $20,000 all-time high, which led some to believe its price was going to keep on growing. Tom Lee, a Wall Street analyst and the head of research at Fundstrat Global Advisors, maintained a $25,000 by year-end price prediction throughout most of the bearish trend, but lowered it to $15,000 last month.

Other long-term price predictions still see the cryptocurrency’s price surge in a small amount of time. One of the most bullish predictions is that of cybersecurity pioneer John McAfee, who has predicted BTC’s price will hit $1 million by 2020.

Palladium outperformed every other asset in the study as its price has been heavily influenced by the threat of a potential US-China trade war, and by demand that far surpassed supply this year, according to analysts.