Investors have done their best to predict markets and put their best foot forward when approaching an asset class. However, if history has taught us anything, it’s that we can never really predict what happens to markets. Once again, cryptocurrencies have sown that.
If you invested $1 in bitcoin at the start of the decade, it would now be worth more than $90,000, according to a recent report by Bank of America Securities https://t.co/oS2Vn0T0lU
— CNN Business (@CNNBusiness) December 19, 2019
As we wrap up 2019, many people are beginning to take stock of the events that have transpired across the past decade. CNN has helped investors get a roundup, and in the process, went on to name cryptocurrencies as the star investment of the decade.
More Returns Across the Board
According to the popular news medium, the crypto space was able to outperform stocks, fiat currencies, commodities, bonds, and other alternative assets across the past decade. Quoting numbers from Bank of America Securities, it revealed that $1 put into Bitcoin at the beginning of the dace would have yielded $90,000 today.
MYTH: To invest in $BTC, you have to buy a whole #Bitcoin, FACT: Bitcoin is easily divisible, so you have the freedom to invest for less than you likely spend on coffee. $GBTC #DropGold https://t.co/fdlAf6m9Pr
— Grayscale (@GrayscaleInvest) December 19, 2019
Although Bitcoin has admittedly slumped before regaining some form of resistance, a holistic view of its performance shows that it was able to beat out other investment categories. Apart from Bitcoin, the top commodity of the decade was found to be gold (no surprises here), which would yield $1.34 right now on a $1 investment in 2010.
The United States stock market, which is holding pretty strong despite fears of a global crash, wasn’t able to match crypto’s performance, as CNN noted that investing $1 into stocks at the beginning of the decade would have yielded just $3.46 at the end of this year.
At the same time, $1 invested in 30-year-old U.S. treasury bills over the same period would have yielded just $2.08.
Bitcoin Ruled 2019 Too
A similar report was given on December 13 by CoinDesk, which noted that cryptocurrencies were able to outperform every other asset class for the year, despite starting in January at a rather terrible point.
As the news outlet noted, crypto-assets were able to withstand the crypto winter of 2018 and move ahead of other assets. Quoting Ryan Alfred (the president and co-founder of Digital Assets Data), the news medium explained that large-cap crypto assets still provided higher returns on investment than traditional assets at the end of the year.
As for gold, its performance for the year held up rather nicely as well, as it started the year trading at $1,242 per ounce and is now trading at $1,474 at press time (per data from GoldPrice). Its 15 percent rise, however, still pales in comparison to the 91 percent rise that Bitcoin has seen over the course of the year.
Stocks also did rather well this year, but several people have pointed out that this rise was fuelled by an alarming increase in government spending, an increase which has now led the total US debt to climb up to $23 trillion, as the US National Debt Clock shows.
It’s also worth noting that cryptocurrency investors could earn even more in the new year. The Bitcoin halving- a process where the block rewards given to miners is cut in half- is expected to occur in May, and if history is any indication, it could be followed by a rally in the asset’s price.
Not to prod into your investment plans, but Bitcoin is one asset you want to keep your eyes on going forward.
The post CNN Crowns Bitcoin the Best Investment of the Decade appeared first on InsideBitcoins.com.
Go to Source
Author: Jimmy Aki