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These 5 Traditional Investments All Lost Over 37% In Bitcoin Value The Past Year

 3 years ago
source link: https://cryptomode.com/these-5-traditional-investments-all-lost-over-37-in-bitcoin-value-the-past-year/
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When people think of Bitcoin and cryptocurrencies, they will only see the volatile side of the spectrum. The recent 50% price drop for all crypto assets is not doing the industry any favors. However, when pricing things in BTC value, a fair few asset classes bleed a lot more value. Price In Bitcoin provides the data below.

Fiat Currencies Are A Mess

Considering how most people price Bitcoin in fiat currency – USD, EUR, GBP, CNY, etc.- one would think these currencies have gained value on the world’s leading cryptocurrency. Nothing could be further from the truth when pricing these currencies in Bitcoin, rather than the other way around. All fiat currencies lost between 67% and 78.4% in value when priced in BTC. The Argentine Peso, Turkish Lira, US Dollar, and Japanese Yen are the biggest “losers” in this segment. 

Precious Metals Can’t Keep Up With Bitcoin

Some people link Bitcoin to gold and other precious metals as a store of value during financial uncertainty. A viable thought were it not for precious metals losing significant ground to Bitcoin in the past year. Whether it is gold, silver, platinum, or palladium, the yearly performance is -62% or worse for all these markets. A very problematic situation for those who favor gold or silver over BTC. Even with Bitcoin losing 50% of its value, it remains the better performing asset across the board.

US Equity Markets

It would appear the correlation between Bitcoin and equity markets is far less outspoken than some people expect. Although both markets can move in similar directions simultaneously, the equity markets are far less favorable to invest in. The Dow Jones, S&P 500, NASDAQ 100, and Russell 2000 all lost value when priced in BTC, with deficits ranging between 57.39% and 62.25%. Not a good performance against “the most volatile and speculative investment asset on the market”. 

Bitcoin Annihilates Technology Stocks

When Bitcoin and crypto mining became more popular, companies like NVIDIA and AMD were quick to jump on the bandwagon. Other companies, like Tesla, have decided to take a contrarian stance in recent months. Regardless of which option one prefers, all of these significant technology stocks underperform against Bitcoin. Tesla’s loss of 37.71% is the “best performance”, whereas Activision Blizzard lost 66.13%. Everyone is free to invest their money as they see fit, but things look very different when protecting values in BTC. 

US Bond Markets

As one of the older financial instruments, bonds are losing momentum rather quickly. Their returns are less than impressive, and their overall “worth” in BTC value declines rapidly. In the past year, the INV Grade Corporate Bonds, US 1-3 year, and US20+ year lost over 71% in value when priced in BTC. People who put their money into Bitcoin for 3-20 years will likely see an exponential return, whereas US bonds may offer a few pennies in comparison. 

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