Many crypto enthusiasts like to talk about the expected season of altcoins (altseason), which has long been considered one of the most profitable bitcoin market cycles. Of course, for active cryptocurrency traders.
When the season is in full swing, large altcoins such as Ethereum, Litecoin, and small-cap assets, such as Pundi X, grow exponentially in price compared to bitcoin. Traders who at the first stages catch a trend can increase their assets at BTC in a relatively short period of time.
Nevertheless, empirical data shows that in the long run, the costs of Bitcoin-maximalists pay off. This is especially true for retail traders who have little or no experience in trading volatile assets.
This week, VanEck strategist for digital assets Gabor Gurbacs tweeted his company’s latest calculations on the effectiveness of digital assets over various time periods.
VanEck has expanded its capabilities through cryptocurrency using MV Index Solutions (MVIS), which offers customers access to various indices. These include bonds, hard assets, digital assets, sector assets and specialized assets.
In the area of digital assets, the CryptoCompare Digital Assets 10 Index (MVDA10) includes the ten largest cryptocurrencies. Over the past 3 years, this index has surpassed the CryptoCompare Bitcoin Index (MVBTC), MVDA10 is significantly ahead of the CryptoCompare Digital Assets 100 Small Capitalization Index (MVDASC), which consists of 50 small cryptocats Pundi X, Huobi Token and Hshare.
For three years, MVDA10 (blue chips) grew by 2837%. While MVBTC and MVDASC increased by 1928.2% and 1243.8%, respectively.
Despite the fact that the index of “blue chips” is far ahead of others, a more thorough check shows that bitcoins make up more than a third of the basket.
MVIS gave him a weight of 33.15%. Ethereum is in second place with 26.32%, Ripple is in third place with just under 15% of the index. The company has given the weight to other digital assets with a large capitalization of less than 30%.
Gabor Gurbach also tweeted that last year the Bitcoin index CryptoCompare (MVBTC) “left blue chips and low capitalization assets with a nose”.
MVBTC rose 71.5%, while blue chips (MVDA10) fell 6.5%, while small assets (MVDASC) fell 64.6%.
A new study confirms the thesis that bitcoin is a safe haven as a means of saving savings in the long term. Although the blue chip index outpaced the bitcoin index over a three-year period, the fact that bitcoin has the most weight in the blue chip basket shows that the cryptocurrency king has done a great job.
In addition, MVBTC is the only index among the three that are in the green zone for a 12-month period. Consequently, the blue chip index should be in red, just like a basket with small assets.
Thus, if you are not a professional trader, it is safer to invest in Bitcoin, maximizing return on investment.