Long-term investments, if chosen wisely, can yield significant returns. In some cases, investors can realize returns that are multiples of their initial investment.
Let's find out which assets have provided the highest returns over the past decade and compare the performance of the most capitalized cryptocurrency, Bitcoin, with real estate, gold, currencies and securities.
Comparison of Asset Returns Over the Last 10 Years
Bitcoin. The first and most capitalized cryptocurrency has shown phenomenal growth over the past ten years. Since its inception in 2009, #Bitcoin has attracted investors worldwide. In 2013, BTC was trading at $100, but in 2024, the coin reached a new all-time high of $73,750. Despite high volatility, Bitcoin remains one of the most profitable assets. The potential for further BTC growth is driven by its deflationary nature.
Real Estate in USA. Real estate in the United States has proven to be a reliable investment over the past decade. Housing prices have shown significant growth, especially in major cities like New York, San Francisco, and Los Angeles. From 2013 to 2023, the average home price in the US increased by approximately 50-70%. Factors contributing to this growth include a stable economy, low-interest rates for mortgages, and high demand for housing in urban areas. Additionally, the US real estate market has benefited from foreign investments and a growing population.
Gold. Gold has always been considered a "safe haven" for investors. Over the past ten years, the price of this precious metal increased from $1,300 per ounce in 2013 to a historical maximum of $2,454 per ounce in May 2024. Gold serves as a good means of protecting capital during periods of economic uncertainty and inflation. Therefore, it is often referred to as the "fear currency."
US Dollar. The US dollar remains one of the most stable currencies in the world. Over the past ten years, the dollar has strengthened against other global currencies due to the stable US economy and Federal Reserve policies. However, the dollar's returns compared to other assets are low.
Euro. Like the dollar, the euro is one of the leading global currencies. Over the past ten years, the euro has shown mixed results. At the beginning of the decade, the euro strengthened against the dollar, but then its exchange rate began to decline due to economic problems in the EU zone. Overall, the euro has shown moderate returns and volatility.
Stocks. Stocks are one of the most popular investment instruments. Over the past ten years, global stock markets have shown significant growth. The S&P 500 rose from 1,600 points in 2013 to 5,178 points in 2024, an increase of about 224%.
Conclusion
Over the past ten years, Bitcoin has shown the highest returns among the assets considered. Stocks came in second.
Gold remains a reliable asset with moderate growth. Real estate in USA also showed stable growth. However, the risks of price declines in the segment due to the phasing out of preferential mortgage programs and the country's geopolitical position reduce the attractiveness of long-term investments in USA real estate.
Currencies like the US dollar and euro showed lower returns but provided stability and capital preservation for their investors.