Total return growth in 2021 exceeds 60%, BTC becomes the best performing asset class for three consecutive years

Bitcoin’s total return increased by 66.5% at the end of 2021, making it the best performing asset class for the third consecutive year. Bitcoin outperforms the other 16 asset classes, including ancient investment tools such as gold, commodities, U.S. Treasuries and bonds.


(Bitcoin performance in 2021)

In addition to Bitcoin, commodities are closely followed, with a return rate of 41.4% in 2021. The United States Real Estate Investment Trust (REITS) ranked third with a 40.5% return.

In addition, at the end of 2021, the Financial Times also pointed out that rising inflation has made gold one of the worst performing major asset classes in 2021. In some people’s minds, the luster of this precious metal has faded in the face of “digital gold” Bitcoin. . Precious metals, often referred to as inflation hedges, have fallen 5% this year. In contrast, Bitcoin saw a sharp rise in 2021 (albeit with greater volatility) and has appreciated by 65% ​​so far this year.

The data shows that not only in the past 3 years, in fact, Bitcoin has been the best performing asset in 9 of the past 11 years. It was surpassed by the US Real Estate Investment Trust (US REITS) and US Cash (US Cash) only in 2014 and 2018. However, during this time period, Bitcoin is still the best performing asset, with a cumulative total return of more than 1 million% and an annualized total return of 197.2%.

Ecoinometrics’ report in early 2021 further showed the rapid growth of Bitcoin. The report shows that the total return rate of Bitcoin was 2675% over a four-year period, Tesla ranked second with a return rate of 1406%, and AMD ranked third with a return rate of 695%. On the 8-year chart, although Tesla, Nvidia, AMD, and Amazon all have considerable return on investment, Bitcoin has grown by 20238% unprecedentedly.

Although it has recorded rapid growth in the previous ten years, on this basis, at the beginning of 2021, Bitcoin still maintained an ultra-high return and surpassed other major traditional asset classes. According to a Goldman Sachs report, as of March 4, 2021, Bitcoin’s year-to-date return rate is about 70%, about twice that of the second-ranked energy industry (about 35%).

With such a high growth, after the Bitcoin spot price in 2021 has continued to record highs, the current Bitcoin price is hovering at 46,000 US dollars. For the market outlook, the market has mixed views.

PlanB, the anonymous creator of the S2F model, said in an interview that he is not worried about the short-term price of Bitcoin. In the long-term, it will reach US$100,000 to US$1 million.

In addition, in terms of market participants, PlanB’s latest Twitter survey shows that nearly 24% of people believe that the price of BTC will remain below $50,000, 31.1% of people believe that the price of BTC will be between $50,000 and $100,000, and 32.6% of people believe that the price of BTC will be between $50,000 and $100,000. It is believed that the price of BTC will be between US$100,000 and US$200,000, and 12.6% of people believe that the price of BTC will exceed US$200,000.

On December 26, 2021, according to Santiment analysis, Bitcoin may still remain at the level of $50,000.

The President of El Salvador, Nayib Bukele, published his Bitcoin forecast for 2022 on Twitter, stating that it will reach 100,000 U.S. dollars; more countries will adopt it as legal tender; it will become a major election issue in the U.S. election this year; Bitcoin City will begin construction ; Volcano bonds will be oversubscribed.

Forbes predicts that as inflation increases, workers’ salaries will decline relatively, and Bitcoin will become an alternative to the U.S. dollar against inflation. co-founder Brock Pierce predicts that due to the global economic situation, the price of Bitcoin may soar to five figures next year, and even briefly touch $200,000. He also believes that regulation may help the cryptocurrency field, but only if it is included in the scope of regulation after thorough research. In addition, Tom Lee, managing partner of Fundstrat Global Advisors, also predicts that the price of Bitcoin may reach $200,000 in 2022.

Mike McGlone, senior commodity strategist at Bloomberg, said that the Bitcoin bull market has not yet ended, and in the near future, Bitcoin may reach $70,000.

Posted by:CoinYuppie,Reprinted with attribution to:
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