Bitcoin or Stocks: Which Is the Better Investment Option?Ryan Tucker
Everyone who invests their money wonders at some point whether there are better investment options for them out there. And the choices for investment seem at times to be nearly unlimited. While most financial advisers would recommend that people invest in a mixture of stocks and bonds, a growing number of younger investors are choosing to invest in Bitcoin or other cryptocurrencies. So what’s the better investment option, Bitcoin or stocks?
An interesting recent study found that it took the average Bitcoin investor 1,335 days, or about 3.66 years, to make a profit on a Bitcoin investment. That may sound like a long time, but the same study found that it took the average investor 23 years to make a sure profit by investing in the S&P 500. That’s a clear indicator that Bitcoin can offer investors profits in a much shorter time frame.
Not only is Bitcoin able to offer profits quicker, it is also able to offer much larger profit potential than stocks. Because most stocks are no longer growth stocks and have much smaller share price growth as their companies mature, profits diminish as time goes on. While Bitcoin profits also will diminish as time goes on, that won’t be for a good while.
Since the beginning of 2017 the Bitcoin price has octupled, a phenomenal rate of growth that stocks can’t match. Even with their massive price growth over the past three years, stock markets can’t match Bitcoin’s price appreciation. The Dow Jones has increased about 36% since the beginning of 2017, while the S&P 500 has grown about 33%.
That means that Bitcoin has provided investors with 20 times the growth of stock markets since the beginning of 2017, a huge advantage. Yet Bitcoin naysayers like to claim the the Bitcoin “bubble” burst a long time ago, while they try to deny that stock markets are in a bubble. I don’t know about you, but if investing in Bitcoin means outpacing stock market growth by a factor of 20 even with a burst bubble, it seems like it’s a no-brainer to choose Bitcoin over stocks for long term wealth appreciation.