- Bank of America Merrill Lynch (BAML) published its ranking of the best and worst investments of the decade. Bitcoin is number one in the ranking.
- One dollar invested in Bitcoin ten years ago would be worth about $90,000 today.
Bitcoin has been growing exponentially for a decade. Initially, many doubted the legitimacy and ability of the asset to position itself as a real alternative to the traditional financial system. Today, one of the world’s leading banks awarded Bitcoin the title of best asset of the decade.
Bitcoins performance over a decade
The market for cryptocurrencies is difficult to predict. It is subject to high volatility and, according to the latest findings regarding the ongoing proceedings against Tether and Bitfinex, manipulation. However, Bitcoin has achieved considerable growth. Since the publication of the whitepaper and the use of 10,000 BTCs for a pizza, when the value was not even one dollar, BTC has established itself as a real alternative for the people to gain total sovereignty over their finances. It is not only a store of value, but also a frequently used asset to escape inflation and economic crises.
The Bank of America Merrill Lynch has taken up these facts in a recent report. The bank claims that the first people to acquire one Dollar in BTC have a return on investment of approximately $90,026. In comparison, a $1 investment on the stock market would have yielded a $3.46 return.
The worst rated investment on the Bank of America’s list is Myanmar Kyat. The currency has lost so much of its value that the equivalent of USD 1 a decade ago would have a current value of $0.004 on the spot market.
BAML has a list of best/worst asset classes of the decade:
* Best: Bitcoin $1 in 2010 = $90,026 today
* Worst: Myanmar Kyat $1 in 2010 = $0.004 (spot) today.
* (For comparison: US equities $1 in 2010 = $3.46 today)
— Carl Quintanilla (@carlquintanilla) December 13, 2019
Bitcoin has a better performance than the S&P 500
As CNF has reported, the conclusions of the Bank of America report coincides with the figures of Coinbase. The exchange has recently published a report that shows how Bitcoin managed to surpass one of the most important stock exchange indexes in the United States, the S&P500.
Coinbase has highlighted some aspects of Bitcoin that explain the results obtained by the Bank of America, for example, the speed at which BTC was introduced. In the United States alone, more than 27 million people use Bitcoin. In addition, there is the decentralized aspect of Bitcoin.
Anyone can download the software and be part of the more than 55,000 active nodes which are located in nearly a hundred countries. These two aspects are related to the principles that make Bitcoin attractive to people and its outstanding performance over the decade.
After the recent downturn, analysts are divided over how long the Bitcoin bearish trend will last. Pessimists think that bearish sentiment may continue for months beyond the second half of next year. On the other hand firms such as Blockchain Capital have declared that 2020 could be the year when Bitcoin is surpassing its historic all-time high of $20.000. In any case the next decade will be important for the crypto market, as the Coinbase study cites:
Bitcoin will outperform ETFs, index funds and even the company’s own shares within ten years.
5/13 Since 2013, bitcoin has outperformed the world’s most popular stock indexes, including tech stocks and the S&P 500. This year, bitcoin has also outperformed world stock market indexes, generating a 132% return. pic.twitter.com/nwj6YEX0QW
— Coinbase (@coinbase) October 31, 2019
The price of Bitcoin is currently at $ 7.174 USD and recorded a loss of 1.20% in the last 24 hours. It remains to be seen if the predictions of some analysts are fulfilled and if the Bitcoin’s bearish trend will accentuate in the next few days.