Decoding Asset Volatility: Bitcoin vs. Gold, SNP500, and Nasdaq – a Key Question Every Investor Must Address:

Volatility, in the financial markets, is a measure of the price fluctuations of an asset over a certain period of time. It's often interpreted as a gauge of potential risk, and the greater the volatility, the riskier the asset is deemed to be. This is because more volatile assets are less predictable and can make large price swings, both upwards and downwards.

Against this backdrop, consider the 90-day volatilities of Bitcoin, Gold, SNP500, and Nasdaq. Bitcoin, a comparatively younger asset, stands at 2.2(see figure attached). This is higher than that of Gold (0.95), SNP500 (0.88), and Nasdaq (1.16). At first glance, Bitcoin's higher volatility might signal a higher risk. However, it's important to put these numbers into perspective.

The differences between Bitcoin's volatility and those of the other mentioned assets are not significantly large. Considering the market capitalization of Bitcoin currently stands at $593 billion, this asset is already a major player in the financial scene.

Given the increasing uncertainty in the global economy, diversification is more important than ever. While Bitcoin might be slightly more volatile, its potential rewards could far outweigh its risks for investors willing to hold. So, the real question may not be about the risk of holding Bitcoin but rather the potential risk of underexposure to this rapidly growing asset class.