- Bitcoin has been the best performing asset of 2019. Despite being down 67% from its all-time high of $20,000, BTC is up 90% YTD.
- The world’s leading cryptocurrency is currently trading around $7,200 with an ROI of 5,287%, as per CoinMarketCap.
- Market commentators however have been predicting another moonshot to $100,000 as the top of the next bull market.
The Unicorn of the Decade
Bitcoin is not only the best performer of 2019 but it has been of the decade. Till early March, Bitcoin’s value was about nothing, with its earliest value recorded at $0.003 in March 2010 when it started trading on now-defunct BitcoinMarket.com, the first bitcoin exchange.
Less than a decade ago, a $100 bitcoin price prediction sounded more ridiculous than a $1,000,000 prediction does right now. pic.twitter.com/GfOnC9CHCV
— Rhythm (@Rhythmtrader) December 10, 2019
According to Balaji S. Srinivasan, co-founder of Earn and former CTO of Coinbase, it is the biggest unicorn of this decade. Nothing else than Bitcoin he says has been found at the same time that held at $100 billion for a longer time.
“As a tech investment, it is by some measures the best of the decade,” he said.
As the decade ends, the biggest unicorn of the 2010s wasn’t Uber, Airbnb, or Snap. It was Bitcoin.
— Balaji S. Srinivasan (@balajis) December 4, 2019
Unicorn is a privately held startup valued at over $1 billion and though not a company, Bitcoin as a tech investment is “by some measures the best of the decade.”
In the next decade, Srinivasan believes any more of these tech companies will become or be disrupted by the decentralized protocol as such “protocol vs company will become more common as a comparison.”
Bitcoin is already a preferential asset class among millennials, as further evident from the latest Charles Schwab reports that revealed GBTC in the top 5 holdings for millennial investors beating Disney, Microsoft, Netflix, Alibaba, and Berkshire Hathaway.
Also, in the light of its survey, digital asset management firm Grayscale Investments' Managing Director Michael Sonnenshein stated, “About 21 million investors in the U.S. would have an interest in investing in bitcoin.”
Interestingly, 43% of those interested investors are female.
Germany’s Deutsche Banks’ strategist Jim Reid is already talking about the unraveling of current fiat system in the next decade that that would lead to the demand for alternative currencies like crypto to soar.
Capital controls imposed by the governments of citizens and cash hoarding and super-rich stockpiling gold because they don’t trust government and banks is another step towards a decentralized currency and store-of-value.
While on one side negative interest rates could push people towards Bitcoin, policies like the one in Greece, where citizens will be hit with a hefty fine if they do not spend 30% of their income electronically could further drive the demand for cryptocurrency.
Not to forget the money printing and QE.
— notsofast (@notsofast) December 10, 2019
Mati Greenspan, founder of newsletter Quantum Economics, as Chinese inflation jumps to 4.5% last month. questions,
“The world's central banks have been pouring an inordinate amount of money into the economy for more than a decade. What did they think would happen?”
Could this just like Greenspan’s airplane taking off GIF see the Bitcoin flying?
— Mati Greenspan [not trading advice] (@MatiGreenspan) December 10, 2019
Despite being 100% up this year to date, Bitcoin as an asset had a lower Sharpe Ratio, which is the ratio of the “average return earned in excess of the risk-free rate per unit of volatility or total risk,” at 1.39 than that of S&P 500 at 1.74.
This certainly means Bitcoin has some catching up to do and the 2020s just might be that decade.