January 5th. Bitcoin has a bad start in 2022. In the past 12 months, Google (parent company Alphabet), NVIDIA, Gamestop, Microsoft, Apple (Apple) and Tesla (Tesla) both beat Bitcoin in return on investment.
1. Bitcoin will perform well in 2021.
2. However, many technology stocks will perform better in 2021.
When it comes to investment, an annual rate of return of 60% is pretty good. However, the return on investment of Bitcoin holders in 2021 has not exceeded that of a Web2 company that it has been trying to surpass: Alphabet (Google’s parent company). It has to be said that Bitcoin’s performance in December was mediocre, and the entire 2021 ended with a 60% return-this was the worst performance since 2018 (the value of Bitcoin at that time shrank by about a quarter three).
Obviously, for the market leader’s Bitcoin, this mere double-digit rate of return can’t help but make people ridiculed. At present, the market value of Bitcoin is 880 billion U.S. dollars, ranking eighth on CoinMarketCap’s asset list, between Meta (FB) and NVIDIA. Generally, as certain assets grow gradually, their upward liquidity will decrease; on the contrary, there will be more room for growth, which is why newly launched blockchain and encryption projects (such as Axie, Solana and Shiba) Inu) The reason for the amazing rate of return.
Alphabet, which currently has a market capitalization higher than Bitcoin, successfully defeated Bitcoin with a 68% return rate. According to data provided by Google Finance, thanks to the increase in advertising revenue on some platforms such as YouTube, the stock price of Google’s parent company rose by 68% in 2021.
At the same time, other top technology stocks performed very well. Nvidia specializes in producing chips for video game equipment and encrypted mining equipment. Due to the shortage of the entire market supply chain, its products are in short supply. At the same time, prices are also rising. Therefore, the company has achieved a 125% return in 2021; its market value is currently Has exceeded 750 billion U.S. dollars.
In the list of these outstanding companies is another company called Game Station (GME), a video game retailer with a market value of $11.7 billion. In January 2021, members of the sub-section of WallStreetBets (one of the most popular stock and options exchange communities) continued to buy the company’s stock and suppress short-selling GME hedge funds, causing the company’s stock price to rise from around $20 in early 2021 to At nearly $150 at the end of the year, this meme stock rose 687%.
Data will not lie
According to data provided by CoinGecko, Bitcoin has a very sluggish start to 2022, and the cryptocurrency’s earnings have fallen by 40% in the past 12 months. In contrast, some other high-tech Web 2 company stocks performed very well last year, such as:
1. The stock price of technology giant Microsoft (MSFT) has risen 54% in the same period last year.
2. The share price of another technology giant Apple (AAPL) rose 41%.
3, dogs coin enthusiasts · Elon Musk ( Elon Musk, ) ‘s electric car manufacturer Tesla (TSLA) shares in the last 12 months rose 64%.
In fact, if Elon Musk hadn’t “blended” Bitcoin, Tesla’s stock price might have risen even better. In February 2021, Tesla announced that it would spend 1.5 billion U.S. dollars to buy Bitcoin and accept Bitcoin as a payment method within a short period of time. However, in the following month, with the rise of Bitcoin, Tesla’s stock price fell from $863 to $563.
Although cryptocurrencies and company stocks are two different types of assets, it is because of the differences between them that it is instructive to compare them. Many high-tech listed companies (not just Alphabet) pay dividends to shareholders on a regular basis. In addition, some stocks-even personal stocks-can be included in retirement accounts, which means that they can enjoy tax benefits, which makes these stocks more attractive to retail investors. This is not the case with Bitcoin, so there is a need for a Bitcoin trading fund that can trade stocks on a traditional exchange.
Of course, Bitcoin holders may be a little disgusted with the comparative data listed in the article-if they go back to another time frame, these numbers may look completely different-after all, Bitcoin has a glorious history. However, this is exactly the point, as stated in a recent Bloomberg article comparing Bitcoin and Apple:
“At least in the past year, after experiencing such a big shock, you have to accept the fact that Bitcoin’s return rate is not as good as that of a company that makes your mobile phone.”
It is worth mentioning that just two days ago, Apple’s market value exceeded US$3 trillion, becoming the only company in the world with a market value of more than US$3 trillion, far exceeding the current total market value of approximately 23,600 cryptocurrency markets.
From this point of view, these “veterans” in the Web 2 field have not withered yet.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/web-2-veterans-are-not-dead-why-tech-giants-can-beat-bitcoin-overwhelmingly/
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