Bitcoin Investment Beats Gold
2020 is no exception to the rule that putting $1 into Bitcoin nets investors more than traditional assets as $1 Bitcoin investment beats gold and stocks despite 2020 gains.
Bitcoin still beats gold as an investment in 2020 despite the precious metal generating its biggest returns in a decade.
In a knock to gold bugs, data shows that despite gold’s run this year, Bitcoin (BTC) still trumps every macro asset when it comes to investment profits.
Bitcoin “quietly eating the financial world”
Fresh off its second-best quarterly close on record, Bitcoin is up almost 50% in 2020, while gold has managed just half of that at 25.6%.
The S&P 500, an index with which Bitcoin has shown considerable correlation, is just 5.5% higher than at the start of January. Despite its increasing strength, the U.S. dollar has netted savers just 2.2% year-to-date returns, while oil is the big loser, with WTI crude down by almost 35%.
For popular statistician Willy Woo, zooming out to examine Bitcoin’s returns versus gold since the cryptocurrency’s inception in 2009 strengthens the case for holding BTC.
The numbers would appear to speak for themselves. $1 of Bitcoin purchased even one year ago would have netted its owner $0.31 profit, while gold would have gotten $0.27.
Prior to the end of 2017, when BTC/USD began consolidating after reaching all-time highs of $20,000, the differences are much more palpable. $1 invested five years ago is now worth $44.43, while $1 of gold is worth $1.67, according to Woo’s figures.