Analysts Predict Nvidia Will Not Outperform Bitcoin in the Next Decade.

Technology company Nvidia (NVDA) performed better than Bitcoin (BTC) in the past decade, but cryptocurrency analysts argue that this trend is unlikely to continue in the next decade. Swan Bitcoin CEO Cory Klippsten suggests that the likelihood of Nvidia outperforming Bitcoin in the next decade is "almost zero." This view, despite acknowledging Nvidia's impressive past performance, is also expressed by investment strategist Lyn Alden, who prefers Bitcoin for the next decade.

Nvidia's Historical Performance.

Data from Statmuse reveals that between May 23, 2014, and May 23, 2024, Nvidia's return was an astonishing 21,558%, significantly higher than Bitcoin's 13,048% return.

Nvidia's success is largely attributed to its production of chips necessary for training and deploying artificial intelligence (AI) models. Despite this, in the three months since the approval of spot Bitcoin exchange-traded funds (ETFs) on January 10, Bitcoin has slightly outperformed Nvidia with a 31.7% return compared to Nvidia's 30.2%.

Kobeissi Letter highlights that a $10,000

investment in Nvidia shares in 1999 would

be worth $25.3 million today, emphasizing

Nvidia's long-term growth potential. Daniel Sempere Pico questioned whether Nvidia would have been seen as a riskier

investment in 2014, considering that both

Bitcoin and Al were less widespread at the

time. Pico noted that while Al's potential

was unclear in 2014, some foresaw

Bitcoin's potential.

Past Risks and Rewards.

Pico's thoughts highlight interesting points about the perceived risks of investing in Nvidia and Bitcoin a decade ago. In retrospect, both investments carried significant risks but also offered substantial returns. The unpredictability of Al's growth contrasted with Bitcoin's more predictable yet volatile nature, pointing to different factors affecting their performance.