The most famous cryptocurrency will end one of its worst years. This is how this option has performed compared to other investment alternatives, such as fixed term
For Sebastian the professor
03/12/2022 – 6:12 p.m.
Bitcoin (BTC)the cryptocurrency with the largest market capitalization and the best known in the ecosystem, is about to end one of the worst years in its short history.
Far was the optimism registered by the digital currency created by Satoshi Nakamoto in November 2021, when its price exceeded the $68,000.
Its present is very different from its glory days: it started January at an average value of $46,800 per unit, but failed to reverse the bear market and started December in the orbit of the $16,900.
This BTC crash, greater than 62% of YTDis one of the strongest in its history and the short-term forecast is not optimistic, as the fall is expected to be larger and put the price of the most famous digital currency of all in close numbers of $13,000.
Moreover, if we take the price of Bitcoin in pesos, on the first day of the year its price was $9,561,000but started the last month of 2022 in 5,384,000 pesos.
Fixed Term UVA Against Bitcoin
viewed by iProfessional about How savers who have opted for the different alternatives present on the market to make their money work, the economist Iván Carrino provides the following data from his own elaboration based on market data:
For each u$s1,000 At the end of 2021, there would currently be:
- u$1,181 in fixed-term UVA (+18.1%)
- u$s983 in traditional CDD (-1.7%)
- $351 in Bitcoin (-64.9%).
The FTX crash led to a general decline in the crypto market
If the equation passed to weight, the results would be as follows for each $208,000 (the equivalent of u$s1,000 at the end of 2021):
- $370,834 in fixed-term UVA (+78%)
- $314,000 (equivalent to $1,000, +51%)
- $110,219 in Bitcoin (-47%).
For the case of traditional CDD, Carrino clarifies that the calculation was made on the basis of an investor who always carried out the operation for 30 days and renewed at the end of the period.
Why Bitcoin did so poorly in 2022
in dialogue with iProfessional, Cryptocurrency expert and CR Academia co-founder Camilo Rodríguez explains that BTC suffered steep falls due to the collapses experienced by the large companies in the sector.
These shocks, which aroused the mistrust of users (and even liquidated the investments of thousands of them), were combined with the measures of the FED, which raised the reference rate to suppress liquidity and lower inflation. in the United States, a policy that it has also affected the stock values of large technology companies.
“It all started with LUNA’s implosion and the loss of the parity of its stable currency. Then came the bankruptcy of Celsius, 3AC and Voyager. The recent fall of FTX and the bankruptcy of BlockFi have also had an impact on the crypto world. But the positive point is that the market has gotten rid of these bad actors, some of whom have even been accused of embezzlement,” adds the specialist.
“And since all markets are connected, the collateral damage was very significant. But for new bull runs to take place, a new scenario was needed, refined with the falls, which happened like a domino effect.and where the conditions are given for more liquidity to be injected,” adds Rodríguez.
Bitcoin has lost more than 60% of its value in the year
If you bet on Bitcoin, this year you lost “by a landslide”
The data analyzed shows that the fixed term, in its UVA version, stood out against Bitcoin and the dollar, due to its performance and low risk compared to its “competitors”.
Moreover, Carrino’s values, “few things in the world beat inflation in Argentina”.
As for the other options apart from the classic alternatives, but which require more knowledge within the personal finance ecosystem, the expert points out that the Merval in dollars was the best option.
This option gave:
- For every $1,000: +22.8%
- For every $208,000: +85%
“But with fixed-term UVAs, you’ve gained more than 78% (value brought to the close of this note). This figure is more than with dollars, traditional fixed-term, and of course, well above of Bitcoin, which is the worst investment of the group,” he says.