Bitcoin‘s ascent in the financial world is evident from its logarithmic growth curve over the past 15 years. Analyst Willy Woo has highlighted this growth by comparing Bitcoin’s performance with major asset classes, showing Bitcoin’s superior returns in most years.
Bitcoin’s Comparative Success Story
Woo’s analysis reveals that Bitcoin outperformed traditional assets like gold, various stock and bond indices, and commodities in three out of the last four years. This evaluation included a range of assets from the S&P 500 Total Return Index to Dow Jones indexes representing commodities and emerging markets.
Woo examined an 11-year span from 2013 to 2023, during which Bitcoin underwent nearly three full market cycles and saw three bear markets. In such downtrends, Bitcoin experienced significant drops, falling by as much as 58% to 73%.
Bitcoin’s Unmatched Profit Potential
Despite downturns, Bitcoin has consistently led the pack in profitable years, achieving gains between 37% and a staggering 5516%. The next closest competitor, the Dow Jones Emerging Markets Index, peaked with a 35% gain over the same period. Woo humorously noted the timing of Blackrock’s new Bitcoin ETF, suggesting a newfound endorsement of the cryptocurrency’s potential.
A closer look at the long-term investment returns from Bitcoin versus gold and the S&P 500 illustrates Bitcoin’s dominance. A $1 investment in Bitcoin when it was first priced in 2009 would be worth a monumental $38.5 million today, while the same amount in gold would have achieved a mere $1.94. These figures underscore Bitcoin’s exceptional growth and investment appeal.