Not merely a year, but an entire decade has just gone by. So it’s time to do the math and find out which financial asset class has performed best over the past decade.

The result is always the same: Bitcoin once again has outperformed other major asset classes, including gold.
The most popular crypto-asset has beaten gold in terms of returns by such a large amount this decade that investors have firmly dismissed recent price declines.

Data from CoinMarketCap shows that since 2010, Bitcoin has delivered profits of almost 9 million percent.

Bitcoin historical chart (courtesy of CoinMarketCap)

 

Bitcoin vs Gold

Put differently: $1 invested in Bitcoin ten years ago was worth around $90,000 as of December 31. By comparison, $1 of gold is now worth just $1.34.

The statistics underscore Bitcoin as a winning investment for the vast majority of existence. Since 2009, Bitcoin has only been unprofitable to buy on 434 days — at price peaks.

This equates to 89.16% profitability, allowing Bitcoin to put paid to gold’s record despite the precious metal’s own recent advances in U.S. dollar terms.

Bitcoin vs Great Stocks

Other asset classes pale in comparison to Bitcoin. The stock market was in a bull market the entire decade, yet $1 invested into American stocks only grew into $3.46. This is considered an impressive gain for the stock market, but is pretty much nothing relative to Bitcoin.

Stock return in past decade vs Bitcoin:

  • Bitcoin: +8,999,900%
  • Netflix: +4,177%
  • Amazon: +1,787%
  • Apple: +1,126%
  • Starbucks: +800%
  • Nike: +587%
  • Microsoft: +556%
  • Google: +335%

Even a $100,000 investment in a cultural phenomenon like Netflix wouldn’t have brought as much return on the initial investment as $10,000 invested into Bitcoin.

$1 invested in bonds would have turned into $2.08 instead.

Year-on-year, Bitcoin returns have been similarly impressive. At current price levels around $7,250, Bitcoin investors made 93% profits versus December 2018.

Bitcoin price chart for 2019 (courtesy of CoinMarketCap)

The Longevity of Bitcoin

With 2017 as an exception, they remain in the green every year since the beginning.

As reported, a recent analysis of wallets has shown that Bitcoin “hodlers” have in fact remained highly disciplined in 2019, despite this year producing a bull-run from lows of $3,100 to almost $14,000.

The phenomenon supports the perception of Bitcoin as an investment tool, suitable for savers with a low time preference who wish to preserve wealth for the long term.

As Saifedean Ammous summarized in his popular book “The Bitcoin Standard: The Decentralized Alternative to Central Banking” that characteristic will continue to pit Bitcoin directly against “easy” forms of money, including fiat currency.

The last decade has been quite a turbulent one, especially within the financial markets. The Bitcoin emergence might have disrupted some traditional forms of investments, especially when we compare stats from the past ten years. Over the last 10 years, Bitcoin has been resilient through good and bad times and has noted numerous improvements in its usage and security, raising the question of what is to come and how it will affect our investments and entire lives.

Now, Bitcoin faces its next test: the 2020s.