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Bitcoin Performance Against Gold and Stocks: Which One Shows Better ROI?

Mon, 08/09/2021 - 08:37
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Arman Shirinyan
ROI of Gold, Bitcoin and Stocks: Which one was a better investment opportunity 10 years ago?
Bitcoin Performance Against Gold and Stocks: Which One Shows Better ROI?
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According to recent market-related data, Bitcoin's 10-year ROI (Return On Investment) has hit +457,703%. Bitcoin is a young and rapidly growing asset in comparison with mastodons like gold, silver and traditional time-tested stocks, but it still manages to massively outperform them with a higher ROI. Here is the reason.

Maturity of the financial asset

In comparison to the gold that has been a tradable asset for more than 50 years on markets like CME, Bitcoin's trading history is only around 10 years old. That fact makes Bitcoin a highly "amateur" asset that is volatile, risky and sometimes more than profitable.

The ROI of gold in the past 10 years has been around 0 percent. That does not sound like a great investment opportunity since dollars that you invested in gold 10 years ago and decided to withdraw today now have a smaller buying power due to inflation. But does this make gold a bad investment asset? Let's imagine that gold was only 10 years old like Bitcoin and take a look at the chart.

Monthly Gold Chart

As you can see, gold's ROI at the beginning of its market history hit more than 2,000% growth since the asset was more volatile due to immaturity. The same goes for Bitcoin. Due to the immaturity, small size and attractive fundamental features of Bitcoin, it is showing us great market performance.

Stocks against Bitcoin

The main "competitor" of Bitcoin is stocks, which are still more popular among private and institutional investors. According to TradingView data, the S&P500 index displayed an ROI of 272 percent over 10 years, making it 27 percent of the average annual return for someone who decided to invest in stocks back in 2011.

Financial experts were not recommending Bitcoin as an investment opportunity due to high risks and volatility. But according to the latest news, the massive inflow of funds from institutional investors is inevitable. Such tendencies will likely make Bitcoin a more mature and less volatile asset in the long term.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.