Re:S&P Dow Jones Indices to launch cryptocurrency indexes in...
by allendoerfer on Thursday December 03, 2020 @04:10PM
(#25294982)
If I am investing and seeking returns I will tolerate a certain level of risk and volatility, if they are justified by the returns I am getting.
If I want to store value, what I am looking to avoid at all costs is volatility and risk. That's why instituations are even accepting to lose a little bit of value in return for security by buying bonds from Northern European countries.
It's kind of in the definition of the word "storing": If you want to store water you won't put your bucket of water on to a race car, even though it might drive through a heavy rain.
If I want to store value, what I am looking to avoid at all costs is volatility and risk. That's why instituations are even accepting to lose a little bit of value in return for security by buying bonds from Northern European countries.
It's kind of in the definition of the word "storing": If you want to store water you won't put your bucket of water on to a race car, even though it might drive through a heavy rain.