Investors got higher returns from Bitcoin than the stock market out of the past ten years, data from YCharts shows.
The founder and CEO of Compound Capital Advisors, Charlie Bilello, shared data from YCharts yesterday that showed how Bitcoin brought investors exceptional returns when stacked up with other asset classes, like the stock market, bonds, gold, and the US dollar.
In 2013, the investors got a 5,507% return on the Bitcoin investment. Cumulative returns, which tracked the total profit for the past ten years, 6,271,233% – more than six million percent and the next highest index, Nasdaq 100, increased by 512.5%.
The annualized returns, which tracks how much the investors made in a year, were more than ten times as large as the Nasdaq 100. Bitcoin’s annualized returns from 2011 – 2012 were 203.5%; the Nasdaq returned the profits to a flat 20%.
When Bitcoin crashed in 2014 and 2018, it hit hard. So hard that bitcoin was the worst performing asset of the entire market. In 2014, an investment in Bitcoin would have dropped by 58%; and in 2018, 75%. Bitcoin is on another bull run this year. By the end of the last month, Bitcoin broke past the all-time high, set in 2017. The current price is around $19,300.
But these returns from the Bull Run aren’t as great as it was in 2017. That year, a Bitcoin investment would have appreciated by 1,331%, and this year, just 162%.
Investors have profited from the investments in all but one asset class, and risky investments like Bitcoin are more volatile than the US dollar, which increased by 0.5% in the past ten years, or gold, which increased by just 2.2%.
The only unsuccessful investment was commodities, like petrol, wood, and gasoline, and the asset class dropped by 6.1%.
Some institutions argue that Bitcoin is not an asset class. It would undermine the exultancy of these findings. Goldman Sachs told investors last May that Bitcoin is not an advantage class.
They also stated that Bitcoin is volatile; it generates cash flow or earnings through exposure to global economic growth and doesn’t hedge inflation.
“We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients,” they said.
Is the exclusive bank and army of overachievers wrong? Crypto Twitter thinks so.
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