Hello Steemians,
Jamie here, welcome to the second edition of "Jamie's Blockchain Nordic blog - a light hearted look into the world of blockchain and cryptocurrencies".
Last week I introduced Blockchain Nordic and wrote about the journey so far, with a little hint at todays topic. If you are reading this without having read my previous post then fear not, or do, I shouldn't be telling you how to feel.
Nonetheless today I wish to write about the Blockchain Nordic Index (BNX) and briefly explain our reason for creating an equally-weighted index.
The hard facts are;
BNX is comprised of 8 cryptocurrencies (Bitcoin, XRP, Monero, Ethereum, EOS, QTUM, ICON and Lisk). Each of these cryptocurrencies are split in two categories; Development Applications (DApps) (which make up 80%) and Digital Currencies (make up remaining 20%) in the index. The DApps are therefore evenly distributed, with each accounting for 16%. Digital currencies are evenly distributed between the remaining 20% (6.67% each).
This allows for smaller market priced assets such as QTUM, ICON and Lisk, where the potential for higher volatility increases, to have an equal influence as larger market priced assets such as Bitcoin, XRP and Ethereum.
Why did we go with an equal-weighted index?
The Blockchain Nordic Index, was and is the first product which we came out with way back when the cryptocurrency market was more volatile than a vindaloo. Therefore we came up with a product which would suppress the negative volatility during aggressive bear runs, whilst remaining profitable enough to have a decent Return on Investment (ROI) during booming bull runs. Through an equally-weighted, monthly rebalanced index.
When looking at market cap indexes (where the price of the asset and the number of available shares determine how much the percentage make up of the index is) their performance over time showed equally-weighted indexes outperformed market cap indexes.
For a much more detailed explanation of WHY and explain the whole technical analysis behind each asset in BNX, just let me know and I'll mail our catalogue to anyone interested in seeing it.
-Jamie
Blockchain Nordic is a digital asset investment firm, where you can buy, sell and manage your digital assets such as Bitcoin, XRP, Ethereum and many more. We offer a direct gateway with an easy to use platform to support your needs. You can invest directly with your credit card into these assets safely and easily. Register for free today at http://account.blockchainnordic.dk