Yale University financial experts have outlined a basic strategy for identifying the best buying opportunities for some of the largest cryptocurrencies by market capitalization.
Yale economics professor Aleh Tsyvinski and economics Ph.D. candidate Yukun Liu, have studied the historical price trends of Bitcoin (BTC), Ripple (XRP) and Ethereum (ETH). The BTC data was tracked between 2011 and 2018, while the XRP and ETH performance was analyzed since their inception in 2012 and 2015, respectively. The economists described their findings in a report titled “Risks and Returns of Cryptocurrency”, published on Monday.
Tsyvinski and Liu say in the paper that cryptocurrencies have “low exposure” to traditional asset classes, such as stock, currencies and commodities. The research also calls into question popular explanations that supply factors such as mining costs, price-to-dividend ratio, or realized volatility are useful for predicting the behavior of cryptocurrency ret...
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