How does Bitcoin compare with stock market?
Clearly the winner is Bitcoin!
I wanted to compare stocks with bitcoin for long range. So, I compared data since before my birth like 1983 up until now for the most popular stocks and two most popular cryptocurrencies: Bitcoin and Ethereum. S&P500, Nasdaq 100 shows the aggregate stock market trend and for individual stocks I have used FAANG(Facebook, Apple, Amazon, Netflix, Google) and Tesla. And finally the one big store of value: Gold. All of them are plotted in logarithmic scale in vertical axis.
As you can see, there's a reason why Gold is considered as a stable store of value. Clearly the golden gold price line is relatively flat over all these years. We can see the dotcom bubble which started in 1990s and started bursting from 2001. Then you can also see the 2007-2008 Market crash when the banks have been bailed out by Obama administration. And then the era of Cryptocurrency and Blockchain which starts with the birth of Bitcoin in 2009.
The growth of Bitcoin is pretty amazing. How the red line has surpassed everything is unfathomable, so quickly, so fast! Generally the stock market is showing an uptrend after 2000 and even after 2008 crash. So, if you got into stock trading early on, you definitely did pretty well. However, many argue that this stock market performance is artificially produced by quantitative easing and ultimately depends on the fact that US dollar is the reigning currency of the world. Some argue that Bitcoin's value is not directly correlated with many of them as Bitcoin can survive without the existence of traditional fiat currencies. Some look at this chart and think that this is just a bubble which will burst. I am with the first view that Bitcoin itself can sustain on its own.
Hope you like this comparison. If you do, share and comment.
I wanted to compare stocks with bitcoin for long range. So, I compared data since before my birth like 1983 up until now for the most popular stocks and two most popular cryptocurrencies: Bitcoin and Ethereum. S&P500, Nasdaq 100 shows the aggregate stock market trend and for individual stocks I have used FAANG(Facebook, Apple, Amazon, Netflix, Google) and Tesla. And finally the one big store of value: Gold. All of them are plotted in logarithmic scale in vertical axis.
As you can see, there's a reason why Gold is considered as a stable store of value. Clearly the golden gold price line is relatively flat over all these years. We can see the dotcom bubble which started in 1990s and started bursting from 2001. Then you can also see the 2007-2008 Market crash when the banks have been bailed out by Obama administration. And then the era of Cryptocurrency and Blockchain which starts with the birth of Bitcoin in 2009.
The growth of Bitcoin is pretty amazing. How the red line has surpassed everything is unfathomable, so quickly, so fast! Generally the stock market is showing an uptrend after 2000 and even after 2008 crash. So, if you got into stock trading early on, you definitely did pretty well. However, many argue that this stock market performance is artificially produced by quantitative easing and ultimately depends on the fact that US dollar is the reigning currency of the world. Some argue that Bitcoin's value is not directly correlated with many of them as Bitcoin can survive without the existence of traditional fiat currencies. Some look at this chart and think that this is just a bubble which will burst. I am with the first view that Bitcoin itself can sustain on its own.
Hope you like this comparison. If you do, share and comment.
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