Bitcoin'southward (BTC) risk-return is a "dissimilar beast" compared to fifty-fifty the darling of the stock market of the 2000s, Amazon.

That was the conclusion fatigued by i of the cryptocurrency industry's all-time-known analysts and the creator of a uniquely accurate Bitcoin cost model.

PlanB: Amazon "normal" compared to BTC

Uploading a chart showing BTC risk-render versus Amazon stocks, U.S. bonds, golden and the Southward&P 500 on January. 24, PlanB showed Bitcoin behaved completely differently as an investment.

Amazon's significant losses in the twelvemonth 2000, combined with its revered recovery always since still keeps it far below Bitcoin'due south risk-reward ratio.

"Bitcoin… is a different animal!" PlanB summarized, describing Amazon's position on the chart every bit "much closer to normal."

Amazon's share price appeared to shake off revelations involving Kingdom of saudi arabia allegedly hacking CEO Jeff Bezos this calendar week. Both $AMZN and BTC nonetheless fell over the past seven days, with the latter potentially reacting to uncertainty stemming from China.

Bitcoin risk-return vs. major investments

Bitcoin take chances-return vs. major investments. Source: PlanB/ Twitter

A volatile winning bet

The impressive contrast comes days after Cointelegraph reported on Bitcoin's risk-adjusted returns outperforming every major investment offering based on a four-year investment.

Then, PlanB appeared to hint that 4-yr periods — the time between each reduction in the new Bitcoin supply — could continue to boost functioning.

Further, cryptographer Nick Szabo added, the susceptibility of traditional instruments to react to government and key bank meddling in currency markets meant Bitcoin was a natural fit for long-term, or low-fourth dimension preference, investors.

PlanB's price model, stock-to-flow, has correctly chosen much of Bitcoin's historical beliefs and continues to forecast a level of $100,000 for BTC/USD in 2022.

At current levels, markets keep to conform to stock-to-catamenia, at $8,300 trading just below its suggested range. Before the adjacent halving in May, $8,300 is, in fact, the average price the model says Bitcoin volition merchandise at before moving significantly higher.