Bitcoin has had its share of unnerving time periods – but over the last decade, it has been one of the best investable assets. Appearing as a “black swan”, BTC reached extraordinary valuations.
Bitcoin Became a ‘Wild Card’ for Personal Finance
Acquiring $1 worth of BTC in 2010 would translate into more than $90,000 today, even after the correction from peak prices.
BAML has a list of best/worst asset classes of the decade:
* Best: Bitcoin $1 in 2010 = $90,026 today
* Worst: Myanmar Kyat $1 in 2010 = $0.004 (spot) today.
* (For comparison: US equities $1 in 2010 = $3.46 today)
— Carl Quintanilla (@carlquintanilla) December 13, 2019
To compare, even after an extremely successful decade for stocks, $1 invested in big indices of US equities would have reached $3.46.
Of course, not everyone can sell at peak valuations without crashing the price, and stock indexes are historically less volatile and more liquid. But bitcoin is a wild card for personal finance, helping build wealth for small-scale investors facing both risky markets and stagnated real income.
BTC Investment Offset Worldwide Economic Risk, Sluggish Stocks
Bitcoin investment is not limited to US-based persons and caused a boom of investments in Korea and other Asian countries. Relatively stagnant stock returns caused buyers to adopt crypto assets, moving beyond BTC and into the zone of much riskier assets.
It is possible that other asset classes have reached significant growth in nominal terms in the past decade. The years after 2009 arrived with significant quantitative easing, which boosted asset valuations. The accusations of “bubble” were mentioned multiple times, but those were called for multiple asset classes, from real estate to stock valuations.
The next decade may arrive with slightly slower growth, but most indicators also point to a recession being avoided in 2020. BTC, so far, has not faced a recession and has existed in an environment of investment exuberance.
As for BTC, its fame…