Risk & Return Expectations For Crypto
Consider the fact that Bitcoin is up well over 9,000% over the past 10 years. Assuming a starting price of $50k or so right now, that would mean Bitcoin would need to rocket all the way to $4.6 million to repeat that feat over the next decade.
I don’t know what the future returns in the crypto space will be but it’s safe to assume the growth won’t be nearly as high as it’s been over the past decade.
The returns in this space will come from some combination of user adoption, inflows from investors and innovation from the developers. There are going to be crashes and bone-crushing volatility in this space. Since 2017 alone there have been corrections of 33%, 39%, 41%, 30%, 84% and 62%.