Bitcoin (BTC), the most popular virtual currency has been outperforming traditional stock markets in the last few months. According to data provided by OnChainFX, since January 1, Bitcoin’s price grew 37%. In this way, the digital asset has outperformed the S&P 500 and the Nasdaq 100.
Then, if that was not impressive enough, this interesting tweet full of facts and figures surfaced showing just how strong Bitcoin has been performing in the global economy:
Oil $USO: +38%
Bitcoin $BTC: +35%
Nasdaq 100 $QQQ: +21%
REITs $VNQ: +19%
MLPs $AMLP: +18%
Small Caps $IWM: +18%
S&P 500 $SPY: +17%
EM $EEM: +14%
EAFE $EFA: +13%
Commodities $DBC: +13%
High Yield $HYG: +9%
Investment Grade $LQD: +6%
Bonds $AGG: +2%
Gold $GLD: +0.5%
— Charlie Bilello (@charliebilello) April 13, 2019
Only oil has edged bitcoin in 2019 returns on investment (in which one user commented how the price of oil has stayed the same for the past dozen years) and reveals just how strong Bitcoin has been despite being over 480 days since its all time high BTC/USD exchange rate value back in December 2017. While crypto traders and community experts remain confident in bitcoin's future, let's take a look at how $BTC has stacked up against conventional financial mediums like the stock markets.
Although Bitcoin fell 80 percent since its all-time high registered in December 2017, the digital currency seems to be gaining momentum once again. At the beginning of 2017, Bitcoin was traded close to $1,000, but now, the digital asset is being traded above $5,000.
The CEO of Xapo, Wences Casares, said that a $10 million portfolio should consider an investment of 1% in Bitcoin (BTC). In the long-term, this investment could help the portfolio bring a large return for the investor.
On the matter, he commented:
“I suggest that a $10 million portfolio should invest at most $100,000 in Bitcoin (up to 1% but not more as the risk of losing this investment is high). If Bitcoin fails, this portfolio will lose at most $100,000 or 1% of its value over 3 to 5 years, which most portfolios can bear. But if Bitcoin succeeds, in 7 to 10 years, those $100,000 may be worth more than $25 million, more than twice the value of the entire initial portfolio.”
In a long-term perspective, Bitcoin has performed very well compared to other assets in the traditional financial market, even after the bear market experienced in 2018. Large financial institutions are starting to pay close attention to the cryptocurrency market due to the fact that it could continue growing in the near future.
Fidelity Investments and the Intercontinental Exchange (ICE) are creating the necessary infrastructure for larger investors to enter the crypto market. In 2018, Grayscale has also helped investors enter the space.
Although investors believe that digital assets could still fail, most of the experts consider that after ten years, it is possible to think about them as a long-term investment opportunity.
There are several firms and companies that are investing in blockchain technology and digital assets. Meanwhile, the market continues to evolve and become more mature with investments from companies such as Bitwise, Gemini, Coinbase and many others, bringing transparency and better services to users. What seems to be sentiment from the community as well as Binance Research is that the crypto market and bitcoin price has already bottomed out, which could mean even greater investor returns for $BTC buyers.
If I'm being honest, $BTC looks like it has actually bottomed out…..
…on the inverse chart.
— AskMeHow (@AskMeHowToShort) April 14, 2019
Currently, each Bitcoin can be purchased for $5,100 and it has a market cap of $90 billion.
Live Bitcoin (BTC) Price:
1 BTC/USD =$8,010.1301 change ~ 0.31%