Although Bitcoin is a relatively new asset class, the cryptocurrency’s return on investment is significantly higher, dwarfing other traditional products. The growth has seen Bitcoin outperform some of the established banking sector stocks by significant margins.

According to data acquired and calculated by Finbold, Bitcoin’s return on investment over the past five years has outperformed leading banks’ stocks by 4,214% on average. The cryptocurrency has outperformed Wells Fargo (WFC) by a whopping 7,151.86%. Compared to Citigroup (C), Bitcoin ROI is higher by 4,951.47%, while Goldman Sachs (GS) ranks third at 3,101.94%.

Among the highlighted asset classes, Bitcoin also controls a higher market capitalization of $813.56 billion as of September 21. JP Morgan (JPM) ranks second with a market cap of $471.17 billion. The data on ROI performance is provided by Finbold’s Bitcoin ROI tool.

Bitcoin has outshined the stocks for traditional banks that have been in existence for decades highlighting the digital currency’s impact and role in the financial world and the potential it holds for investors. Worth noting is that Bitcoin and the banks belong to a different asset class. The banks are for-profit businesses companies controlling tangible products and services while Bitcoin is a virtual asset.

Furthermore, despite Bitcoin commanding a significant return on investment, the selected banks hold a superior position with trillions of assets under management. The banks also pay a dividend based on stock performance, while Bitcoin returns are from rise in demand and value.

Bitcoin’s returns can significantly be attributed to the cryptocurrency’s rise in popularity and value recorded early this year. Bitcoin recorded an influx of institutional investors driving the price to hit an all-time high of $64,800 in mid-April. Despite short-term corrections, the asset has to a large extent sustained the gains made.


Leave a reply

Your email address will not be published. Required fields are marked *