A new report from CoinGecko shows that Bitcoin has outperformed traditional investment assets over the past decade, establishing itself as one of the most promising investment prospects.
The report reveals Bitcoin’s unmatched returns compared to gold, stocks, and US Treasuries.
Bitcoin is changing the investment market
In 2014, if someone had invested $100 in Bitcoin, it would now be worth approximately $26,931. That’s a whopping 27,000% return.
In contrast, the same investment in the S&P 500 index would yield 193.3%, while gold would yield 125.8%, and 10-year US Treasury bonds would yield 86.8%. In other words, nothing compares to Bitcoin.
Bitcoin vs traditional assets over the last 10 years. Source: CoinGecko
Bitcoin’s annualized return is also significant compared to these assets. BTC has maintained its momentum in 2024, delivering a year-to-date return of 129%. This performance outperforms gold, which is up 32.2%, and the S&P 500, which has gained 28.3%. Analysts attribute Bitcoin’s gains to growing institutional interest and favorable macroeconomic trends.
This decade-long view reveals Bitcoin as the ultimate high-growth asset, with gold, bonds and stocks offering safer, lower-return alternatives for risk-averse investors. However, Bitcoin was still a relatively new asset, with a significantly smaller market cap than other assets. This smaller base allowed it to grow at a much faster pace, the report stated.
However, the study notes that bonds have performed well over medium-term horizons. Over the past three years, five-year U.S. Treasuries have returned 267.8%. Meanwhile, 10-year bonds have achieved a gain of 218.0%. These figures highlight bonds as a stable choice during periods of economic stability.
Industry giants suggest Bitcoin as an alternative for treasury
While Bitcoin offers unparalleled growth potential, the currency’s volatility poses risks. These findings highlight the importance of portfolio diversification. Traditional investments like bonds and stocks can provide stability for risk-averse investors. Even investment management giant BlackRock suggests allocating up to 2% of portfolios to Bitcoin.
Bitcoin’s rewards are unparalleled, but its risks are significant. Diversification across asset classes remains essential for long-term success, the report says.
Investors are encouraged to weigh the high-risk, high-reward nature of Bitcoin against more predictable asset classes. This approach can help mitigate losses while capitalizing on Bitcoin’s growth.
As Bitcoin becomes more integrated into global financial systems, its role will evolve. Investors must carefully assess how much risk they are willing to take on for potentially extraordinary returns. One thing is certain: the evidence from this report on Bitcoin’s position as a pillar of modern investment strategies is undeniable.
The article CoinGecko: Bitcoin Outperforms Traditional Assets in Returns appeared first on BeInCrypto Brasil.
