Bitcoin (BTC) made an unprecedented profit in history and eventually left Tesla’s shares in the dust.
According to new data from the network monitoring source CaseBitcoin, which examined Bitcoin’s fantastic compound annual growth rate (CAGR) this week.
Handles BTC: 10 years, 5,200,000% return
A familiar phrase among both cryptocurrencies and traditional investors, it is often overlooked as a very simple measure of Bitcoin’s performance relative to other assets.
However, during its twelve years, the largest cryptocurrency has existed so much that it has actually surpassed everything in terms of size. It barely fits the scale.
As CaseBitcoin sums up, Bitcoin’s 10-year compound annual growth rate is 196.7%, “unmatched in financial history.”
“This is a number that no one has heard of. This means that Bitcoin returns almost 200% (that is, your money almost triples) every year for 10 years * cumulatively *,” the company wrote in a series of tweets that followed the numbers. .
“In terms of net return on investment, this is 5.2 * million *% per contract.”
10-year compound annual growth (CAGR) chart for Bitcoin. Source: CaseBitcoin / Twitter
The compound annual growth rate (CAGR) is calculated by using the return on investment (ROI) between two dates and calculating the average total income generated for the year.
By comparing Bitcoin with gold, the S&P 500, the Nasdaq Composite Index and long-term US government bonds, as well as Tesla and Amazon stocks, CaseBitcoin shows how much Bitcoin is in another league – since its inception.
Second, Tesla shares are only for BTC, with an average annual growth rate of 63.8% over 10 years. Amazon is number three with 33.5%.
“Well, but bitcoin was small 10 years ago, and maybe 10 years ago is the chosen timeline …” CaseBitcoin added to defend CAGR as a valuable reference.
Bitcoin’s compound annual growth rate surpasses all multi-year periods in the last decade.
Bitcoin multi-year compound annual growth rate comparison table. Source: CaseBitcoin / Twitter
Sailor predicts demonization of gold
The absolute numbers give a story that exists among some of the most well-known and most vulnerable investors in the Bitcoin world. Notable among them is MicroStrategy, which added more than 90,000 BTC to its current range this week.
In August 2020, when the company first announced that it would switch vaults from cash to bitcoin, CEO Michael Saylor began emphasizing the fact that nothing provides returns equivalent to Bitcoin or protects capital from monetary inflation. Today, his argument is no different.
“Over the last decade, Bitcoin has surpassed gold 100 times,” he tweeted on Monday.
“The next decade will witness the complete digital transformation of gold into bitcoin and the dissertation of the value class.”
MicroStrategy is not the first company to recognize a potential for long-term investment in Bitcoin. Cointelegraph reports a compound annual growth forecast even before the bullish race in 2017 to $ 20,000.