Bitcoin has been widely talked about recently by both experts and critics. New statistics from Charlie Bilello, Chief Market Strategist at Wealth Management and Investment Advisory Firm Creative Planning, show Bitcoin on top in terms of annual return compared to all other asset classes, with an average annual return of 145.9% from 2011 to 2024.
When looking at Bitcoin’s 14-year performance, only three years—2014, 2018, and 2022—had negative returns of 58%, 73%, and 65.5% respectively. The remaining 11-year returns place Bitcoin on top with strong positive returns, providing the highest return of 5,507% in 2013. The years 2011, 2013, and 2017 all had returns over 1000%.
Bitcoin Vs Gold
Gold has long been considered a reliable investment and trusted globally for its stability and historical importance. Gold’s status as a store of value is well-established. In contrast, Bitcoin’s status as a store of value is still debated. However, over the past 14 years, gold had positive returns just for 8 years compared to Bitcoin’s 11 years. Despite Bitcoin’s high volatility, data shows that its average annual return of 145.9% is significantly higher than gold’s 3.5%, making it 41.68 times greater. This data supports claims about Bitcoin’s potential as a valuable investment.
Top 5 Assets by Annualized Return
Comparing the annualized returns of the top 5 assets, Bitcoin stands out as the clear leader with a staggering 145.9%. In contrast, the US Nasdaq 100 showed a return of 18.9%, followed by US Growth stocks at 16.3%, US Large Caps at 13.7%, and US Mid Caps at 10.4%. These figures highlight Bitcoin’s significant performance compared to traditional stock market indices and illustrate its position as a standout asset in terms of returns over the specified period.
Michael Saylor Trust on Bitcoin
Michael Saylor’s strong advocacy for Bitcoin is evident in his recent post sharing data from Charlie Bilello, “Bitcoin is engineered to keep winning,” where he highlights comparative annual returns across various asset classes. This data not only informs but also substantiates his unwavering confidence in Bitcoin. As one of the largest individual holders of Bitcoin, with over 17,700 BTC, Saylor maintains his faith in the cryptocurrency even as it faces a decline of 21.88% from its all-time high of $73,780.07.
Bitcoin Proves Higher Risk Higher Return
Critics of Bitcoin often point to its higher risk compared to other investments, a view supported by recent data. Bitcoin has shown significant losses in 2014, 2018, and 2022, aligning with broader market declines. In these years, its losses were the most pronounced among all asset classes. However, remaining 11 years with positive returns, placed Bitcoin on top and outperformed other assets consistently. This characteristic validates the financial sector’s belief that ‘higher risk, higher returns.’
Bitcoin’s Current Status
Bitcoin’s recent drop to $53,500 was influenced by large-scale trading by major investors and government sales of Bitcoin, along with net outflows in spot Bitcoin ETFs. The subsequent rise back to the $58,000 mark coincides with an influx of $143.1 million into Spot Bitcoin ETFs on Friday. Currently, Bitcoin is trading at $57,690.64, marking a 2.01% increase in market capitalization, although trading volume has decreased sharply by 42.14% to $20.77 billion over the past 24 hours.
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