Bitcoin yields reach over 70% in 2021, outperform gold and the stock market for third year in a row

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Although 2021 was a wild ride for cryptos – and Bitcoin ended the year lower than expected – crypto outperformed both gold and the stock market for the third year.

See: 8 Best Cryptocurrencies To Invest In For 2022 Find: These are the stocks Warren Buffett bought and sold in 2021

Bitcoin, which is currently hovering around $ 48,000, is up 70% year-to-date, according to Seeking Alpha. Crypto hit an all-time high of $ 69,000 in November.

In comparison, the S&P 500 index jumped 28% and gold fell 7% over the same period, marking the third year in a row that Bitcoin has outperformed both, according to Cointelegraph, citing a report from Arcane. Research.

Hayden Hugues, CEO of crypto social trading platform Alpha Impact, told GOBankingRates that it’s no wonder Bitcoin has outperformed gold, as it’s easier to buy, sell, and trade, at a cost of null port and can be sent around the world interchangeably within seconds.

Hugues noted, however, that like tech stocks and other asset risks, Bitcoin is likely to be affected by rising interest rates.

“However, we have seen a sustained interest in BTC, with billions of assets under management dedicated to it and other assets. Many institutional investors see BTC as a hedge not in isolation, but in conjunction with a well-diversified portfolio, ”said Hughes. “Similar to gold in the 60s and 70s, BTC is in price discovery mode as the market gives it a place in the modern wallet. Citibank and other banks have postulated that the true value of BTC will exceed 100K or even 300K. “

Related: Jack Dorsey Says Bitcoin Will Replace The Dollar

Bitcoin has garnered increased interest this year, thanks to several factors including the increase in retail investors, institutional adoption by many well-known financial institutions, and the launch of several Bitcoin-related exchange-traded funds (ETFs).

Inflation has also been a driver of increased interest in Bitcoin this year, as Bitcoin’s bulls have continually argued that it can act the same as gold as a hedge against it. Reasons cited include Bitcoin’s inherent scarcity – there will never be more than 21 million Bitcoin in circulation, for example – and the fact that Bitcoin is not strictly tied to a country or fiat currency.

The story continues

Indeed, on December 10, the Ministry of Labor announced that the consumer price index for all urban consumers (CPI-U) had increased by 0.8% in November, and that the all-elements index had also increased 6.8% for the 12 month period ending in November. This latest wave of inflationary pressures represents the largest 12-month increase since the period ending June 1982.

Michal Cymbalisty, founder of Domination Finance, a decentralized, non-custodial exchange for dominant position trading, told GOBankingRates that Bitcoin is now a mainstream asset, having reached around $ 1,000 billion in market capitalization, and that ‘ is clearly a better investment than gold and many other traditional assets.

“Because Bitcoin has reached this level, institutional investors now view it not as a niche asset but rather as an asset that has achieved sufficient legitimacy to merit exposure,” Cymbalisty said. “Below that trillion dollar threshold, most executives and boards of directors remain on the sidelines. As a result of this entry of companies, hedge funds, pension funds and even states- nations, the price of Bitcoin follows this steady and slow upward trend despite temporary declines.

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He added that Bitcoin’s adoption rate is now so fast – almost twice the rate at which the internet itself was adopted – that regular annual price gains of 75%, 100% and more seem possible, if not all. quite probable.

“Compared to gold and other assets, I suspect that people will increasingly see Bitcoin as a safer and more reliable investment in terms of storing wealth while achieving solid returns in terms of movements of money. price, ”he said.

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This article originally appeared on GOBankingRates.com: Bitcoin Returns Reach Over 70% In 2021, Outperform Gold And Stock Market For Third Year In A Row

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