Dec 15, · Investors reaped higher returns from Bitcoin than the stock market for eight out of the past 10 years, data from YCharts shows.. Charlie Bilello, founder and CEO of Compound Capital Advisors, shared data from YCharts yesterday that showed how Bitcoin brought investors astonishing returns when stacked up against other asset classes, such as the stock market, bonds, gold and the . Dec 17, · Market Fact -- Bitcoin surged another % Thursday to $23,, according to CoinDesk, part of a furious rally that has seen the digital currency nearly triple this year. Chart of the Day. Sep 22, · If the stock market crashes, bitcoin is extremely likely to tank for a few weeks, but it won’t break crypto. If you sell your BTC and it doesn’t fall and suddenly jumps $2, you will be Author: Clem Chambers.
Bitcoin to go on stock marketBitcoin Beat the Stock Market for Eight of the Past 10 Years - Decrypt
Some institutions, however, argue that Bitcoin is not an asset class. This would undermine the jubilance of these findings. Remember last week when we were all bullish for the Goldman Sachs Bitcoin call? Is the elite investment bank and its army of tireless overachievers wrong?
Crypto Twitter sure thinks so. The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice. Read on the Decrypt App for the best experience. For the best experience, top crypto news at your fingertips and exclusive features download now. News Business. By Robert Stevens 3 min read. Bitcoin Bull Run Bitcoin.
In brief Bitcoin beat the stock market for 8 of the past 10 years. But when Bitcoin crashed, it did worse than all other asset classes. Goldman Sachs thinks that Bitcoin an asset class. Asset Class Returns over the Last 10 Years You could even set up your own computer to do this if you wanted, but you'd be competing against much faster and more powerful computers.
These compete against each other to process transactions the fastest, and new bitcoin is awarded to the winner. This is the cryptocurrency mining process. Mining bitcoin has a real cost to it. Miners pay for their spaces, equipment, and electricity. While each company's cost structure is unique, they've all struggled to make a profit in recent years. Over time, the cost to mine bitcoin goes up; if the price of bitcoin doesn't go up fast enough, it's not profitable.
Consider recent financial data from Bit Digital. It reported results for the third quarter of on Dec. In other words, its business basically broke even.
The price has since more than doubled, increasing Bit Digital's opportunity to profit. Marathon, Riot Blockchain, and Bit Digital all generate revenue by mining bitcoin. Because the price of bitcoin has more than doubled since September, these companies should start bringing in more revenue and have a shot at higher prices. That's why these stocks go up with bitcoin. Investing legend Warren Buffett once said, "A horse that can count to ten is a remarkable horse -- not a remarkable mathematician.
I personally think this applies to cryptocurrency miners. Don't get me wrong, I like some cryptocurrencies, and I even bought bitcoin and Ether.
I see it as a simple case of supply and demand. Specifically, the supply of bitcoin is limited -- and recently we've seen a surge in demand from corporate entities. This increasing demand coupled with limited supply could keep pushing bitcoin prices higher.
So I do believe cryptocurrency prices can continue to rise. I'm just not sure that bitcoin miners are the best way to invest in this trend. Even if profits for Marathon, Riot Blockchain, and Bit Digital soar in , it's only a matter of time before cash flow would need to be invested in upgrading their equipment. I'm not sure that leaves much room for creating shareholder value long-term. There are plenty of other cryptocurrency stocks that could hold more potential.
But it has powerful hardware that can be used in bitcoin-mining operations as well. In other words, the company could benefit from bitcoin miners buying new equipment, but its business isn't dependent upon that happening.
And I think Buffett would agree that that's a better horse to bet on. Investing Best Accounts. Stock Market Basics. Stock Market.