How Bitcoin Has Performed Versus Top Stocks

[ad_1]

Bitcoin has become one of the preferred investment options in recent times. Its popularity with investors can be attributed to the returns that the asset has provided over its decade of existence. It is one of the few assets that has consistently served as a hedge against inflation while bringing massive gains to its holders. Seeing these gains, more and more investors wanted a bigger slice of the pie.

Until 2009, however, bitcoin was not an investment option for anyone. Even then, it was still largely unknown to the general market. Stocks were at the forefront of investors at this point and investors had seen gains at various times.

Related reading | JPMorgan analysts estimate the fair value of Ethereum at $ 1,500, with bullish outlook for Bitcoin

There were also some stocks that were incredibly profitable during this time. An example of this has been Tesla shares, its success putting ARK Invest CEO Cathie Wood in the limelight after her call to action paid off. Let’s take a look at how bitcoin has performed relative to the top performing stocks on Wall Street.

Bitcoin versus. All the others

Many assets traded in the financial market are much older than bitcoin. Still a pre-teenager, the BTC market is still in its infancy. Nonetheless, this has not stopped the growth of the asset making it a leading competitor in the financial markets. Comparing major stocks and markets with BTC shows a glaring disparity in the performance of the digital asset compared to others.

Trading BTC Price Above $ 63,000 | Source: BTCUSD on TradingView.com

Over the past decade, bitcoin has reported more than 3,000,000% positive gains on its investments, according to this Watcher Guru report. A single BTC cost as little as $ 0.0008 when it was first released in 2009. Over the years, the asset has grown so much, reaching an all-time high of almost $ 67,000 in October.

By comparison, the best-performing stocks show unimpressive returns. Tesla has been one of the top-performing stocks of the past decade, but even automakers’ gains don’t come close to BTC returns. Tesla has returned 22,520%, Nvidia 8,435% and gold has posted a disappointing negative return of 14% over the past 10 years.

Catch up on your market capitalization

Another interesting measure of comparison is the market capitalization of major assets in the financial sector. BTC is not at the top of this list as it does in terms of returns. However, the age difference of all the assets in this list draws an interesting future for both the past and the future of assets in this category.

Related reading | The fractal that puts Bitcoin at $ 100,000 before the end of the year

Bitcoin, although only 12 years old at this point, has beaten well-known and long-standing asset classes in terms of market capitalization. On the one hand, the market capitalization of BTC is almost as large as that of Tesla. It also beats the market capitalization of Facebook and Nvidia, both older than the market’s digital asset. Its market capitalization of $ 1.15 trillion makes it a top competitor in the financial markets

An interesting entrant to this list is Ethereum, the second largest cryptocurrency by market cap. Ethereum, which is only five years old, has a market cap of $ 533 billion. This number makes them a more valuable asset than big names like JPMorgan Chase, Visa and Alibaba.

Featured image from Forbes, chart from TradingView.com

[ad_2]