Decade Of Bitcoin Returns

What does a decade of bitcoin returns look like compared with other major asset classes?

In a few words, Darren Winters describes; the cryptocurrency Bitcoin has been the best-performing asset. Here is a chart courtesy of Voronoi 

The best-performing asset in the world from 2011-2021 was Bitcoin. 

Moreover, the recently launched Bitcoin ETFs have reignited mainstream interest in the cryptocurrency.

So, a decade of bitcoin returns show the cryptocurrency outperforms all major asset classes.

Decade Of Bitcoin Returns

What factors made a decade of Bitcoin returns beat all asset classes?

As mentioned above, the anticipated launch of 11 Bitcoin ETFs has made Bitcoin more accessible to a broader investor base and drove prices higher. 

Central bank monetary policy also influences Bitcoin price.

All risk assets, Bitcoin being no exception, have broken out of their bear market in anticipation of central bank rate cuts. 

As cryptocurrencies emerge from their 2023 bear market, positive sentiment has also been fanned by the halving event in 2024, which happens every four years. 

Halving means that the reward for mining a bitcoin is halved, which means miners will soon be awarded 50% lower rewards for verifying transactions. In other words, the halving process underscores the fixed number of Bitcoins in circulation. 

A decade of Bitcoin versus other assets was unbeatable for the largest-cap cryptocurrency

The coming decade could even be better for the performance of the cryptocurrency if demand continues to grow with a fixed supply of 21 million tokens in circulation, regulated by an algorithm.

So think about it. There is no cap on the amount of currency a central bank can create. Stocks or shares can also be created, their value diluted, with rights issues, and share splits.

The amount of government debt and the monetizing of that debt has no cap. The number of precious metals that could be potentially mined, or synthetically made is unknown.

A decade of Bitcoin returns could outperform all assets if the imputed demand for the cryptocurrency continues to grow

But as Darren Winters wrote in a piece, Looking Under The Crypto Bonnet, dated May 2021 cryptocurrency is more than just an alternative to fiat currency.

Buying a token in a cryptocurrency is like owning a piece of the internet network. The blockchain Ethereum network is the engine driving a string of disruptive applications, which include the decentralization of currencies, cryptocurrencies, and decentralized finance DEFI.

Moreover, it is the network, with the maximum security facilitating high value transactions that is fixed in supply, which ticks all the boxes of being a valuable asset. 

A decade of bitcoin returns is impressive, but perhaps it will be the blockchain network, fixed in capacity, providing the most monetary utility that could outperform the next decade.  

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