Although Bitcoin has fallen significantly from its high earlier this year near USD 13,900, it is important to put things in perspective by comparing Bitcoin’s performance to other asset classes.
Even at Bitcoin’s current price near USD 8,300, Bitcoin is still up 114% on the year. Compare this to the S&P 500, one of the top stock indices in the United States, which is only up 21%. Also, 10-year federal treasury bonds are only accruing 1.6% per year. Gold has had a solid year, rising from around USD 1,300 to USD 1,500, but this is only a 15% gain.
Thus, despite Bitcoin losing a significant amount of value since its peak earlier this year, it is still by far the most profitable asset class of 2019, even though stocks and gold have had a healthy year.
There are signs that the global economy is slowing, and Bitcoin’s performance in 2019 will perhaps attract new investors who are seeking to make quicker profits, versus the slow profits or possibly losses on the stock market expected in the near future.
Image Courtesy: Pixabay