Bitcoin (BTC), the best asset of the decade?
The CEO of Compound Advisors shared on Twitter a summary of the performance of different asset classes over the past ten years. Over the decade, Bitcoin (BTC) fared widely:
— Charlie Bilello (@charliebilello) March 13, 2021
It is noted that Bitcoin has always been the best performing asset, except for 2014 and 2018. The cumulative increase in the BTC over the period is astronomical: 20037142%. The annualized increase is also particularly notable: it amounts to 230% for the BTC.
As Roberto Talamas of the analytics firm Messari points out, Bitcoin’s performance is 100 times higher than the second-best performing asset class, the NASDAQ.
Compare Bitcoin and gold
Bitcoin is often compared to gold as a protection against inflation. But from a performance point of view, the differences are very marked. The yellow metal thus grew by 16% over the decade, with an annualized increase of 1.5%. Gold is also listed as the worst performing asset of 2013.
The comparison between Bitcoin and gold has not escaped commentators, with JPMorgan explaining late last year that the largest cryptocurrency would begin to threaten the precious metal, thanks to its growing adoption by institutional institutions. However, it still has a long way to go: its market cap is more than $1 trillion, compared to more than $10 trillion for gold.
Institutionals increasingly present
Bitcoin has been benefiting in recent weeks from the massive arrival of institutions. After Tesla, many companies have directly purchased Bitcoin or launched services related to cryptocurrencies.
Institutions play a leading role in strengthening the fundamentals of Bitcoin and in recent weeks have been particularly impressive on this point. One example is the US bank Goldman Sachs, which has confirmed that it will relaunch its trading service very soon. Another bank, JPMorgan, is preparing a product to expose itself to companies involved in Bitcoin.
In other news not to be overlooked, Meitu became the first Chinese publicly traded company to acquire Bitcoin and Ether for its cash.
At the same time, Norwegian energy giant Aker has acquired $58 million from BTC through a newly created company dedicated to investing in cryptocurrencies and developing the mining industry. In addition, Norway’s second-richest, who is none other than Aker’s CEO, estimates that “a bitcoin could be worth millions of dollars.”
All these parameters help ensure that the uptrend of Bitcoin continues, especially since a new stimulus of $1.9 trillion has just been distributed to the Americans. It is undeniable that some of these funds will be injected directly into the cryptocurrency market, which has become a first door to investment for many people.
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