For a potential investor, the first thing that will come to their mind is whether to invest on stocks or Bitcoins. Since Donald Trump got elected as President, markets can now more or less predict future expectations which bode well for both stocks and cryptocurrency. As market watches await the coming of the Dow 20,000, Bitcoins have reached a milestone as it rallies towards $1,000. If you are planning to invest your money on a market, where should you place it: stocks or cryptocurrency? Robert Peter Janitzek helps us investigate.
Bitcoin’s Strong Returns
Bitcoins continues to deliver a strong performance with significant returns and continuing customer adoption. Compared to all global currencies, Bitcoin has yielded greater returns in 5 of the previous 6 years. With Bitcoins continuing to soar coupled with a stronger and more secured computational network and a multitude of user-friendly wallets services, applications, and resources, maybe this is now the time to consider Bitcoin investing.
The last 5 years has seen the emergence of the grouping of major technology companies known as FANG (Facebook, Amazon, Netflix, and Google). According to Robert Janitzek, these companies have performed well with Amazon delivering 342.02 percent 5-year returns and Netflix an astounding 1156.9 returns. Still, the long term reliability, resilience, and propensity of Bitcoins to provide significant returns for investors can outperform these traditional investments.
Bitcoin is emerging as a retirement portfolio option
Initially, Bitcoins have shown so much fluctuations and growth that it has been difficult for an average investor to become involved confidently. Things have changed, however, with the market now showing more liquidity, security, and regulatory guidance. Now we see a more matured Bitcoin. Over the past 2 years, daily transactions have increased 258 percent. When trading on cryptocurrencies, investors will now feel more confident in Bitcoin’s long term viability and existence.
Bitcoin more productive
With all things being normal, Bitcoins can outperform all the strong FANG assets. Amazon remains bullish but Bitcoins have shown stronger percentage-based returns.
Bitcoins Technical Resilience
Investing on Bitcoins has shown resilience despite multi-year downturns. With over 21 million Bitcoins to invest on coupled with increasing demand abroad, Bitcoin’s medium-term growth is the safer bet.
Bitcoin macro-economically hedges
While the traditional assets and FANG stocks have the tendency to cluster and correlate, Bitcoins continue to be independent from traditional pressures such as end-of-quarter reporting, company performance, and institutional confidence of public stakeholders. When trading on cryptocurrencies, Bitcoins provide an excellent hedge against potential downfalls of traditional assets. It is a distributed, open source project and is a decentralized market.