We all knew that bitcoin was a great investment, but did you know that it might be the best ever?
Bitcoin has been a great investment from just about any way you look at it. If you look at it from the date it was created until now, it becomes pretty much unparalleled.
In fact, you don't even need to go that far back, just going back the last decade, bitcoin is pretty much the best performing asset of recent history, and possibly ever.
Over the last decade, bitcoin's annual compounded growth rate (CAGR) is an astounding 200%.
What that means is that bitcoin has returned roughly 200% every year over the last 10 years, compounded.
In case you didn't know, that is unheard of in financial investments.
Here's bitcoin compared to other great investments over the last decade:
(Source:
)https://twitter.com/case4bitcoin/status/1366403988279595008/photo/1
- case4bitcoin
As you can see, bitcoin blows away the competition here...
TSLA has been one of the best investments ever for many stock investors out there, but it gets lapped by bitcoin.
TSLA has a CAGR of 64%, which is unbelievable compared with most investments, but it less than half of what bitcoin has done.
For some context, over the last decade the S&P has a CAGR of 11%, compared with bitcoin's 200%.
Selective time frames and information bias?
When you see data like this the first thing that comes to mind is cherry picking the data....
What I mean by that is if you pick very specific time frames and compare things, you can basically get the data to say whatever you want it to say...
"There are three kinds of lies: lies, damned lies, and statistics."
-Mark Twain
However, that isn't the case here...
With bitcoin, you can basically take any multi-year time frame over the last 10 years and bitcoin still blows away everything else, even when including the terrible bear markets:
(Source:
)https://twitter.com/case4bitcoin/status/1366404570381881347/photo/1
- case4bitcoin
Ironically, it's worst CAGR comes when looking at just the last 3 years, which includes that terrible bear market I mentioned above... and it still blows away everything else with a CAGR around 70%.
But but but, what about GameStop stock? Wasn't that the best investment of all time.
Well, even going down that path, if you just take the very best dates for GME, you get a return of almost 3,000% on its run up to almost $500.
However, over the last decade that 200% CAGR I mentioned above comes out to 5,200,000% return on investment for bitcoin.
Yea, it's not even close.
The really crazy thing is that this model is going to look over more absurd a year from now when it fully factors in the peak craziness of the current bull market.
The CAGR of that last decade at that point will probably jump well over 200% at that point.
Stay informed my friends.
-Doc