Financial freedom show “InvestAnswers” is still bullish on the risk-to-reward ratio for Bitcoin despite the market crash.
In a YouTube video released on June 26, the anonymous host of InvestAnswers said that Bitcoin will likely still offer an attractive return on investment (ROI) compared to other assets.
He compared BTC to the dividend producing stock of tobacco company Philip Morris (NYSE: PM). Despite being the top blue-chip dividend stock on the market, the host mentioned that the stock price had fallen from $120 five years ago to roughly $100. Even with the 4.8% yearly dividend, InvestAnswers’ host argued that investors would have made no return from their five-year investment, and lost purchasing power during that time.
As reported by The Daily Hodl, he said,
Very important to remember, that $120 you invested five years ago has less than $80 dollars in purchasing power today. So $40 of that $120 is gone because of debasement of the currency. It’s still denominated in US dollars, and that’s the problem.
Despite the recent crypto market crash, InvestAnswers highlighted that Bitcoin is up 728% over the last five years, with five-year returns reaching 2,600% at BTC’s price peak in November 2021.
As noted by the analyst, a small allocation in Bitcoin over a long period of time has provided a disproportionate return to an investment portfolio, even with the volatility. He told viewers that he would still hold Bitcoin at age 60, due to the attractive risk-reward-ratio.
Would I still hold Bitcoin? Yes, because I can’t find better risk-rewards out there. It’s that simple. Especially at these prices. Not financial advice.