Investing in Bitcoin versus other assets

After the recent rally in Bitcoin, everyone is thinking again about how cool it would be to buy the crypto of the yearstenback. But how much more profitable it was than other options, few know. Therefore, we decided to take a look at the performance of bitcoin over 10 years against other assets - and share our observations with you.

 
 

Even before collecting statistics, it was clear that bitcoin would easily outperform other assets, but it is still difficult to believe the numbers before your eyes.The total return was 14,666,567% (14.6 million percent!) or 222.2% per annum.Bitcoin is a rare case of explosive growth withultra-low base. At the end of 2010, all Bitcoin in the world was worth only $1 million (about $0.5 per piece). For comparison, now it is only 20 coins, and those who accidentally received a couple of coins ten years ago have become millionaires.

Note that the rate of the crypto asset was extremely volatile; in 2013, the price increased 55 times, only to fall by more than half.You can notice a certain cyclical trend with a length of about 4 years, where the price of the cryptocurrency showsgrowth spurts and then collapses, reversing the excessively rapid growth. If the trend continues, we can well expect a strong pullback in Bitcoin prices sometime in 2021-22, the first signs of which we already saw in February, when Bitcoin prices fell by more than 20%.

The results of other assets are much moredown to earth, even though the past decade has been one of the most profitable in the history of the market (thanks to endless support from governments around the world).

The entire decade has passed under the banner of the technology sector.We've all seen the incredible growth of Apple, Amazon,Facebook and other giants, and their investors grew richer at 20% per annum, which is twice as fast as the historical return of the US market. The rest of the companies moved much closer to historical norms, which once again shows where exactly all the liquidity in the US markets accumulated.

 
 

Commodities were the biggest disappointment.This is the only asset group where investors lost money. China was the main source of demand for resources in the early 2000s, which quickly accelerated prices across all categories. However, after 2008, the world economy did not show serious growth, which led to almost ten years of stagnation in commodity prices.We are seeing a reversal of this trend now., as investors expect economic growth and inflation to be most beneficial for this group of assets.

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