Gold has a better return on investment than BTC after risk adjustment, although BTC has pumped 40% this year, according to Goldman Sachs.

The BlockBeats news on October 8th showed that BTC has pumped more than 40% this year, outperforming major stock indices, fixed income securities, gold, and oil. However, according to Goldman Sachs data, despite BTC's impressive performance, its volatility results in a risk-adjusted return ratio of less than 10%, far below the industry-leading level of nearly 20% for gold. BTC's low risk-adjusted return validates its excessive volatility and makes it unsuitable as a safe-haven asset similar to gold. This is also the reason why traditional institutions tend to use arbitrage strategies to hedge against BTC price fluctuations.