Bitcoin over the years: The strongest performing asset

Bitcoin has made a name for itself over the past year as one of the highest performing assets during the pandemic. Roll back the curtains though, and the cryptocurrency has even more to it. Over the past ten years, it has been the best performing asset class by at least 10 times more than the second-best.

As noted by Charlie Bilello, Compound Capital Advisors’ CEO and founder, Bitcoin stands out above other assets by a tremendous amount with an average annualised return of over 230%. The next best asset stands at nearly 10% of this with a 20% return.

Asset Class Returns over the Last 10 Years…

Data via @ycharts pic.twitter.com/yRvdkIX1BV

— Charlie Bilello (@charliebilello) March 13, 2021

In the second place, the U.S. Nasdaq 100 Index, is looking at a return of 20% for investment. In third and fourth are the US Large Caps and Small Caps stocks respectively with 14% and 12.9%. All other asset classes fall below 10% annualised returns over the past decade.

Gold versus Bitcoin

Looking at gold’s performance since 2011, the precious metal has made an annualised return of only 1.5%. Compared with Bitcoin’s 230.6%, gold’s performance is shocking. This, especially as it’s boasted a gain of only six years out of the eleven years calculated with Bitcoin looking at gains for nine years. Moreover, the Bitcoin price is showing a gain of 109% as the year currently stands while gold is in the red with a net loss of 9.5%.

Bitcoin over the years

Looking at the data, Bitcoin’s best year was in 2013 with a massive 5507% increase. Over the years, it’s only posted a loss in two of the past eleven years (including 2021) with a 58% loss in 2014 and a 74% loss in 2018. The next lowest year was in 2015 where Bitcoin posted a 35% gain. The only other year the cryptocurrency didn’t experience at least a triple-figure gain was in 2019 where it increased by 95% over the year.