Peer-to-peer consumer loans, cryptocurrencies and gold will perform better than other popular assets in 2021, analysts at Robocash have claimed.
The researchers from the European P2P platform analysed 10 popular assets and gave them a score out of 10 for different criteria and multiplied these by one, two or three depending on the importance of each one.
The most important criteria with a coefficient of three included risk probability, returns and forecasts for 2021, coefficient two criteria was made up of liquidity and pandemic resistance and other criteria included entry threshold and complexity of the tool.
P2P consumer loans, cryptocurrency and gold topped the ratings with respective scores of 101, 112 and 122 points.
Robocash analysts said P2P consumer loans offer stable returns that are relatively high, giving an average of 10 to 13 per cent annually, have low volatility and moderate risks tied to a platform’s ability to fulfil its obligations, or to the borrower’s reliability.
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The researchers predicted a promising 2021 for gold investors as the asset is traditionally stable and has demonstrated good growth in the past two years.
They said that cryptocurrencies, despite their tremendous returns in 2020 and promising forecast for 2021, remain extremely volatile and are associated with big risks. For example, during the crisis last Spring, the asset fell by 86 per cent and then recovered within one month.
“The top three assets on the list may look surprising, as young assets like P2P consumer loans and cryptocurrencies scored higher than more conventional ones, such as stocks or bonds,” analysts at Robocash said.
“The explanation is simple: these assets generated higher returns during 2020, and they are more likely to deliver a better risk-reward ratio in 2021.
“Stock markets are very sensitive to changes in political and economical spheres, e.g. at the beginning of the pandemic, they reported their biggest one-week drop since the 2007-08 financial crisis.
“The market became extremely volatile over the following week, with fluctuations of three per cent or more in the daily session. Crypto is less dependent on the situation in the world, whereas risks at P2P lending can be minimised by investing in reliable lenders and platforms.”