The Bitcoin Boom: A Phenomenal Performance
In a financial world where most investments can be as reliable as a cat on a hot tin roof, Bitcoin (BTC) has strut its stuff with a jaw-dropping performance over the past ten years. Charlie Bilello, the CEO and founder of Compound Capital Advisors, recently crunched the numbers and confirmed that Bitcoin has outperformed all other asset classes by more than tenfold. We’re talking about a financial titan that makes even the finest stocks look like they’re stuck in traffic.
Bitcoin vs. The Rest: The Numbers Game
Roberto Talamas, a researcher at Messari, didn’t mince words when he shared some mind-boggling stats: Bitcoin has delivered an average annualized return of a staggering 230%. To put that in perspective, the second-place contender, the Nasdaq 100 Index, barely breathes at a humble 20%. U.S. large caps and small caps put their best foot forward with performances of 14% and 12.9%, respectively. Funny how Bitcoin’s gains make these others look like they’re still figuring out how to ride a bike, isn’t it?
Once Upon a Time in the Gold Market
Now, if we turn our attention to gold, historically considered a safe haven, it seems the shiny metal has had a rough decade. With a sad annualized return of just 1.5% since 2011 and five years where it managed to produce losses, gold might be reflecting on whether its investment strategy was just gilded nonsense. It’s like that friend who shows up to a party empty-handed but seems shocked no one wants to dance.
A Rollercoaster Ride: BTC’s Journey
Bitcoin’s path has not been all rainbows and unicorns. Since its inception, it has faced only two years of annualized loss, dropping a hefty 58% and 73% in 2014 and 2018, respectively. However, allow me to highlight that in 2013, BTC saw its best year ever with a whopping 5,507% gain. It’s as if Bitcoin took all its losses, learned from them, and hit the gym—hard.
2021: The Year of Highs and Hopes
Fast forward to the present year, 2021, and Bitcoin is sitting pretty with a total increase of 108%. Following a meteoric price surge that saw it touch an all-time high of just over $61,500, the future seems bright. Unlike old Peter Schiff, a gold proponent, who might be wondering if it’s too late for a mid-life career change into crypto cheerleading.
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