Bitcoin was the star investment of the last decade; What to expect in the 2020s?
A one dollar investment in Bitcoin in 2010 would be around $ 137,000 today. He BTC price It was approximately $ 0.08 at the beginning of the decade and is now trading at over $ 11,000, and rising.
The comparison of the Bitcoin investment with important traditional assets, bonds, raw materials, etc. shows that the new financial solution has been the star of the decade.
Bitcoin comparison with other investments
The leading CNN news outlet was the first to post the historical comparison between Bitcoin and other investments. Paul R. La Monica published an article in 2019 and called the first cryptocurrency: "The star investment of the 2010s".
Their comparison was published at a time when BTC was priced at around $ 7,000. He said in the article:
"According to a recent report by Bank of America Securities, if you invested $ 1 in bitcoin at the beginning of the decade, it would be worth more now. of $ 90,000 ». If you consider the historic $ 20,000 of 2017, no investment can compete with that.
The rise in Bitcoin's prices overshadowed many major investment categories in the 2010s. For comparison, the 205 and 200 percent yield on the S&P 500 and the Dow Jones Industrial Average are nowhere near the revealing performance of the 9 percent of Bitcoin at the end of the decade. The Nasdaq 100 Index had another good performance in the past decade, but only posted a 400 percent gain.
Tech companies have shown good results in the stock market. One may think that investing in those companies would be a great victory. The concept is correct for sure.
The best-performing tech stocks in the 2010s was Netflix: NFLX, which resulted in a 3.767 percent return for investors.
Many experts classify Bitcoin as a commodity. Perhaps it is better to compare BTC's performance in the 2010s with those investments. Gold has always been a valuable investment in commodities, but as the second-best product of the 2010s, it was only 33 percent.
Palladium was the best traditional commodity investment of the decade. Its price rose about 225 percent (all according to Capital.com)
As you saw, no investment could beat Bitcoin in the past decade. Other cryptocurrencies performed well in that period, although some of them are not as old as Bitcoin.
Ethereum, the second largest cryptocurrency by market cap, hit a record high of $ 1,300 in 2017 which has been a staggering increase compared to its record $ 0.7 in 2015.
What to expect in the 2020s?
Bitcoin made good returns in the 2010s and attracted many regular and institutional investors to the cryptocurrency market. While some analysts predict a similar increase by looking at historical data and essential milestones like halving, others may not expect that.
After all, Bitcoin has given birth to a whole new trading market. The cryptocurrency trading market, which includes many exchanges with many traders, is today an option for new investors.
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