Bitcoin May Surpass Performance of Stocks Over Next 10 Years Per Crypto Savant Mark Yusko
Bitcoin has been struggling since last year, and this bear market provided an opportunity for cynics to criticize investors for their choices. Though 90% of investors may be well worth the judgment, there are a few of the original investors that have pushed through the bear market suffering, and even managed to create some gains.
PlanB, a crusader for Bitcoin, recently compiled some information that showed that 1% BTC and 99% cash portfolio exceeded the S&P 500 for the last decade, which is easily the most popular and drastic bull run in the index’s history. Though there are a few that skate by with a small margin, PlanB still sees BTC as having the better risk/return ratio, despite the multiple downturns over the years.
Founder of Morgan Creek Digital Assets, Anthony Pompliano, agrees with what PlanB has discovered, even saying that he believes that cryptocurrency will easily surpass the use and profit that stocks see over the next decade. These comments were made shortly after co-worker and boss Mark Yusko participated in a December interview with Power Lunch of CNBC.
Holding 99% cash and 1% Bitcoin over the last 10 years was a better investment than investing in the greatest stock market bull run in history.
Crypto will outperform stocks for next 10 years too. https://t.co/KPVr4ymN4X
— Pomp 🌪 (@APompliano) February 3, 2019
While talking about how young the crypto “technological wave” is, Yusko discussed the volatility of the market, adding that BTC and others are still in a “price discovery” stage of their lifetime. However, he added that there is a major positive aspect to this youth, saying that he believes that they will become essential to major technological infrastructures, including the Android and iOS systems. He added that he believes that cryptocurrency could yield “great returns” in the long run.
Even though Yusko has expressed his belief that crypto will outperform traditional equities in the United States, Pompliano still believes that the company has further to fall in the next few months. Ethereum World News had recently reported on Pompliano’s comments that there is still plenty of the crypto winter that has yet to play out. Presently, the sector is still blasted with unreasonable expectations, and the public does not see the high value in blockchain technology.
Still, everything comes down to the uneven risk-return profile of Bitcoin, which basically just means that a rising price with Bitcoin would mean much more profit, rather than if it were to go down. Alistaire Milne, a crypto-friendly entrepreneur, had commented that BTC’s earliest investors used to call it an
“asymmetric investment opportunity.”
Now, instead of a theory, Bitcoin’s asymmetry is real. With the regulatory changes and the plummet by 80% of its highest price, Milne said,
“[T]he asymmetric opportunity is absolutely explicit.” He also added that, from here, Bitcoin could easily drop “and/or eventually retest its all-time high… at a minimum.”
With each adoption of various technologies or coins, an “order of magnitude bigger than the last” arises. If the value of crypto assets starts to rise, the additional consumers and the increase in “price expectation of HODL’ers” will push past the former high of $20,000 for BTC.