Bitcoin was subjected to a lot of pushback since its inception, with the Federal Reserve chair Janet Yellen calling Bitcoin a “highly speculative asset”. There were institutional players who perceived Bitcoin to be nothing more than a bubble, speculating its price to eventually fall to zero. However, Bitcoin seems to be doing well for itself as it has outperformed traditional markets in 2019.
Earlier, Warren Buffet had called Bitcoin “Rat poison squared” and had said that he wouldn’t invest in it. However, he changed his statement stating that the technology behind Bitcoin had the potential to be “important”. JP Morgan’s CEO Jamie Dimon called Bitcoin a “fraud” and dismissed it, however, a few months later, JP Morgan developed their own “cryptocurrency” called JPM Coin, which received a lot of criticism from the crypto-community.
The price of Bitcoin fell by approximately 80% since its all-time high in 2017, and has been in a bear market ever since. The prices reached the lowest in two years at the end of December 2018. Since the beginning of 2019, Bitcoin’s price has grown by 47%.
When this is compared to other assets in the traditional market, like the S&P500, Gold, Oil, Small Caps, and Bonds, among others, Bitcoin has managed to outperform them, even after being in a bearish market throughout.
A Twitter user @Charliebilello tweeted:
Bitcoin $BTC: +39%
Oil $USO: +38%
Nasdaq 100 $QQQ: +22%
S&P 500 $SPY: +17%
Small Caps $IWM: +17%
MLPs $AMLP: +16%
REITs $VNQ: +15%
EM $EEM: +14%
EAFE $EFA: +13%
Commodities $DBC: +12%
High Yield $HYG: +8%
Investment Grade $LQD: +6%
Bonds $AGG: +2%
Gold $GLD: -1%
— Charlie Bilello (@charliebilello) April 19, 2019
After Warren Buffet’s initial comments on Bitcoin, a few people in the crypto community, especially Anthony Pompliano, put out an open bet for Buffet or anybody else. They bet $1 million that Bitcoin would outperform the S&P 500 over the next 10 years. However, the bet wasn’t taken up by anybody from the other side [traditional markets].
Considering the rise of Bitcoin during its bull run, which caused it to outperform the above-mentioned traditional assets, it seems that Bitcoin, although a speculative asset with massive volatility, has come to stay. Moreover, Bakkt is being developed after institutions faced “FOMO” while awaiting Bitcoin’s next bull run.
A Twitter user @LongPennyStocks commented:
“It woukd be nice if you started posting #PotStocks #Marijuana stocks performance as well. I believe they have earned the right by now to be recognized as a stand-alone category. Depending if you consider or just plays, ROI to date is in excess of 50%”
@Salt_Water_Croc, another Twitter user, commented:
“we see $btc price target of $250k by 2022 based on past performances…if that holds true then then this cant be ridiculed as well…there is no present and future without past.”
The post Bitcoin stands out as it outperforms Oil, Bonds, Gold, Nasdaq 100, and S&P 500 during bear market appeared first on AMBCrypto.