Bitcoin’s performance has far surpassed S&P 500 and Gold for nearly a decade

By Emma 11/27/19 3:11 PM

If you invested in Bitcoin in 2011, you will receive a return on investment (ROI) of 250,000%. Bitcoin’s performance has far surpassed other asset classes, the fact that many Bitcoin proponents highlight potential investors.

By comparison, the S&P 500 has yielded a 147% ROI since 2011 while gold has fallen 100,000x against BTC for almost a decade.

Bitcoin ROI overwhelms S&P 500

Bitcoin advocates, such as renowned investor and trader Anthony Pompliano, often want to adopt Bitcoin’s return on investment (ROI) to emphasize its potential as an investment class.

New feature for @onchainfx lets users track historical ROI for different assets!

Fun fact: $BTC is up 11,004% since @Nouriel first disparaged it on April 16, 2013! https://t.co/9pUHggYgSA pic.twitter.com/Bzkl14Bfwf

— OnChainFX (@onchainfx) November 20, 2019

OnChainFX, a new investment calculator from the market analysis platform, allows users to track historical ROI for different asset types and show Bitcoin’s growth. The average Bitcoin price was below $ 3 in 2011 and currently fluctuates around $ 7100, with a simple calculation, we see a staggering 250,000% ROI – far exceeding any and all asset classes. system.

The S&P 500 is in stark contrast to this performance. As the list of 500 large companies and one of the most accurate representatives of the US stock market, there is a clear difference. The S&P 500 index in 2011 was around 1254 and currently stands at 3110.
The ROI is equivalent to 147%. From that, it can be seen that Bitcoin’s performance in the same time frame is much better than traditional assets and diversification is simply a good investment practice, deciding to invest in No. 1 said it.

Many investors also point out that the current time frame may be the last time an ordinary person can own a full Bitcoin. Pompliano has said that he expects Bitcoin to outperform the stock market in the next 10 years.

Gold decreased by 100,000x compared to BTC

Gold prices have collapsed in the past nine years on BTC. As the leading cryptocurrency acceptance rate increases, many ounces of gold can be purchased with a single Bitcoin.

Network data company Coin Metrics has recently added GOLD/BTC trading pairs to its platform. The idea is to provide transparent data as well as an analysis of the cost of an ounce of gold in Bitcoin to industry stakeholders.

According to the pair, gold has plummeted by 370,000 times since 2010. This precious metal traded as high as 23,600 BTC per ounce on July 25, 2010, to an all-time low of 0.064 BTC per ounce on December 16, 2017.

GOLD/BTC. Source: Coin Metrics

According to contributor at Brave New Coin, Josh Olszewicz, the recession that gold has experienced compared to BTC is so steep that the veteran supporter and long-time cryptocurrency critic Peter Schiff would not want anyone to look. see this chart.

Although gold has sought to restore its value and is currently hovering around 0.20 BTC per ounce, it could not soon reach the level it saw nine years ago. And, based on the supply and demand economic model, gold could continue to go down.

Analyst: Bitcoin’s bottom is undergoing consolidation, which will reach ATH by 2020

The downtrend that the market is facing seems to have been proved just a little bit of a bump. The performance of Bitcoin at the end of the year is usually quite good, most notably in late 2017, the period when the asset witnessed an all-time high of nearly $ 20,000. In the recent bear trend, analysts talked about Bitcoin finding a bottom, while others predicted Bitcoin’s all-time highs for 2020.

A number of technical indicators point to the growth of assets. The network’s hash rate keeps increasing with time, as well as account usage and creation. A number of asset management companies have also released outstanding reports, detailing the level of institutional investment in the market, and the reasons for the increase, especially this year.

But perhaps the most noticeable sign of Bitcoin’s price growth is that the network block reward is expected to halve by May of next year, from 12.5 BTC to 6.25 BTC – an event that is called halving Bitcoin – and this is expected to facilitate favorable price increases.

Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.