One of the first remarkable facts a crypto newbie learns is Bitcoin’s long-term chart shape. The systematically rising logarithmic curve is evidence of the explosion in BTC’s price over the past 15 years.
Bitcoin’s impressive performance prompted Willy Woo to combine the oldest cryptocurrency with today’s largest asset classes. Comparing the annual performance of all major assets, Bitcoin appears to outperform all of its competitors in 3 out of 4 years. However, 1 in 4 years it regularly finds itself at the bottom of the stack and records huge losses.
Bitcoin outperforms all asset classes – 3 out of 4 years
In a recent chart on X, Willy Woo compares the annual performance of the largest asset classes to Bitcoin. These include gold, the S&P 500 Total Return Index (SPX), the S&P US Aggregate Bond Index (AGG), the US High Yield Corporate Bond Index (HY), the Dow Jones Emerging Markets Total Return Index (EM) and the Dow Jones Commodity Index (CMT).
Willy Woo compiles results from the past 11 years: from 2013 to 2023. During this time, the cryptocurrency market went through almost three 4-year cycles and experienced 3 bear markets. The annual declines periodically cause BTC to fall to the bottom of the global asset rankings, recording declines of -58% to -73% per year.
Apart from those bearish years (2014, 2018 and 2022), however, when it is better to stay away from the cryptocurrency market, Bitcoin is the clear leader of the pack. On an annual basis, in bullish years, BTC has generated gains ranging from 37% (2015) to as much as 5516% (2013).
The Dow Jones Emerging Markets Total Return Index (EM) boasted the biggest gain of 35% over the 11 years analyzed. Commenting on his compilation, Willy Woo adds an ironic comment regarding the recently launched Bitcoin ETF by Blackrock:
“Blackrock will actually tell you that, now that they have a product to offer you.”
Gold is bleeding against BTC
For confirmation of Bitcoin’s dominance, highlighted by Willy Woo today, one can look at the long-term charts of gold and SPX versus BTC. In the former, we compare the return on $1 investment when Bitcoin received its first market price in 2009.
If BTC was bought for $1 about 14.5 years ago and it was not sold until today, the investment would be $38.5 million today. By contrast, investing the same $1 in gold would return $1.94 at the time.
Therefore, we can see how the gold value chart against BTC (pink) has been gradually falling, with lower and lower peaks and troughs.
Moreover, profits can be made from investing in BTC not only by buying the oldest cryptocurrency when it entered the market, but almost at any time. This is how Willy Woo compares buying BTC at any time for $1 to buying gold for the same amount:
It is clear that Willy Woo is referring to Peter Schiff, who has been promoting gold by criticizing Bitcoin for years. This is why the analyst includes this comment below the chart:
“I humbly dedicate this chart to @PeterSchiff to honor his tireless promotion of Bitcoin to his audience. We are eternally grateful,” said Peter Schiff.
However, gold – widely regarded as a safe haven – is not the only global asset looking extremely bearish against Bitcoin. The situation is very similar when looking at a chart of a basket of leading US companies’ S&P 500 index (SPX).
Admittedly, unlike gold, the SPX (green line) generates year-over-year gains and ranks high in Willy Woo’s analysis. However, it definitely bleeds against the long-term chart of BTC (red line).
This is why Bitcoin, the cryptocurrency market leader, is the world’s most volatile yet profitable asset. For those who can identify long-term bull and bear markets and 4-year cycles in the crypto market, BTC is a true haven with the potential for big gains during bull market periods.
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Disclaimer
In accordance with the Trust Project Guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimers have been updated.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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