Does it seem like the cryptocurrency craze is over? Well, think again! Bitcoin has outperformed other types of alternative assets, including long-term commodities and investment categories that people swear by.
Maybe, it’s time for another look?
The Resurgence of Bitcoin
It’s actually not accurate to call this a “resurgence,” per se. There was a boom, and everyone wanted to get a piece without realizing what the underlying technology was. This inflated the value of cryptocurrencies thanks to all the buying – which was unnatural at best.
The boom was short-lived, and by the final months of 2022, everything had died down and was back on track. The price rally in major cryptocurrencies led many to say that it was a bubble – and that’s why we think the term resurgence is a little fitting nonetheless.
People are once again realizing the true potential of cryptocurrencies now that the dust has settled. To understand what gives a cryptocurrency value or what makes its value go up, cryptocurrencyhelp.com breaks down basic cryptocurrency terms, concepts, and trading strategies. By this, it makes the process of purchasing digital assets more accessible to everyone, regardless of their trading skills.
Given that, let’s look at how BTC outperformed other alternative assets and traditional capital assets. You can check the performance of BTC against all commodities and stock markets, and BTC will most likely come out on top every year.
BTC vs. S&P500 vs. Gold
S & P 500’s growth in the last 12 months has been around 18%. Gold has gained 6.5%. In contrast, Bitcoin has gained 75%.
That’s the kind of outperformance that beats all estimates. And the best part? BTC has beaten both in almost every time period.
For example, in the Jul-Dec 2022 period, USD was +1.1%, whereas gold and SPX were negative. Overall, the chart of BTC is always above both – Gold and S&P500 except during major crashes, which the cryptocurrency always recovers from.
Also, unlike stocks or gold, those who trade in BTC can make it really big if they happen to trade on some good news. For example, the Dec 2022 to May 2023 period, generally speaking, saw +237% growth in BTC. It was less than 15% in SPX and negative in gold.
So, given you can capitalize on such opportunities, BTC also provides significantly more opportunities than S&P500 or gold.
BTC vs. Art/Collectibles
Bitcoin is one of the most unfriendly cryptocurrencies among all major ones when it comes to art. They still don’t have a widely accessible and convenient way to mint NFTs, for example. But that doesn’t stop the chain from beating the physical world of art and collectibles!
As the majority of people with a taste in luxury know, art and collectibles just so happen to be one of the safest investments.
Art and collectibles have a long and storied history, transcending mere monetary value to encompass cultural significance and artistic expression. From Renaissance masterpieces to modern contemporary works, art has fascinated and inspired humanity throughout the ages.
But when it comes to investing in good art, enthusiasts and hobbyists aren’t limited to buying masterpiece paintings. They like to collect rare baseball cards, vintage comic books, or just mint-condition iPhones because why not.
None of this stuff serves a real purpose.
Now, it’s true that there’s nostalgia and sentimental value associated with certain items. We’re not going to feel embarrassed by our shared love for golden Charizard cards from Pokémon or the desperate need to collect all original Takara Tomy Dragoons, including the one-off versions.
Bonus tip: Here are the top 24 most expensive and rarest Pokémon cards by Dexerto.
But when it comes down to it, BTC not only outperforms art – but it actually serves a purpose while doing so.
At this point, we’d be remiss not to note that it’s hard to plot graphs between the growth in art vs. the growth in BTC like it was so easy to do in the case of stocks and gold. Some pieces of art can sell for much more than they are worth, whereas some masterpieces somehow manage to be taken home by bidders who can’t even pronounce Vincent van Gogh properly.
But overall, BTC has consistently delivered better results than the world of art. You can include painters, collectibles, and products in this mix, and Bitcoin will still outperform it. The fact that BTC is also rare (the supply is fixed while the demand rises – much like the work of artists) adds fuel to this and makes it one of the best investments today.
Wrapping Up
Real estate is the #1 alternative investment on Investopedia’s guide on the same, but we skipped it for obvious reasons. Real estate might give you better returns in a six-month period, let’s say, depending on your region and who’s buying – but these are factors that generally don’t affect BTC’s value.
In case you’re interested, it might be noteworthy that you can buy this $27.5 million River Oaks residence with BTC, which is insane!
Overall, Bitcoin outperforms all assets remarkably well and is one of the best alternative assets today to invest in.
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