Bitcoin has had some nerve-wracking phases – but BTC is still the best investment in the past ten years. BTC, the “black swan”, achieved exceptional ratings.
Bitcoin – the “wild card” for personal finance
The $ 1 acquisition of BTC in 2010 would have resulted in assets of more than $ 90,000 today, even after the correction of top prices.
For comparison, even after a hugely successful decade in stocks, $ 1 invested in major US stock indices would have only reached $ 3.46.
Of course, not everyone can sell at peak values without dropping the price, and stock indices are historically less volatile and more liquid. But Bitcoin is a joker for personal finance – and it helps build wealth for retail investors who face both risky markets and stagnating real incomes.
BTC investment as risk compensation
Bitcoin investments are possible worldwide and led to a boom in investments e.g. in Korea and other Asian countries. Relatively stagnant stock returns have prompted buyers to accept crypto assets by pushing beyond the BTC into the much riskier assets zone.
It is possible that other asset classes have achieved significant nominal growth in the past ten years. There was a significant quantitative easing in the years after 2009, which boosted asset valuations.
Allegations of a “bubble” were made – but for several asset classes, from real estate to equity valuation.
The next decade could start with somewhat slower growth, but most indicators suggest that a recession can be avoided in 2020. BTC has not yet experienced a recession and has been operating in an environment of excess investment.
Bitcoin’s fame arrived relatively late in the decade, gained momentum after 2016, and peaked in 2017. From then on, the Bitcoin ecosystem has grown steadily, despite the correction.
With the mainstream futures markets and exchange-traded products in Europe, BTC looks less and less like an Internet meme – rather like an asset class that competes with the mainstream markets.
Despite the crashes, Bitcoin has hit lows every year and has finally received enough liquidity and support from the futures markets to survive times of relative stability. A global business has also emerged around BTC and mining. December 2019 is considered the last section of the decade for Bitcoin, at least since the start of trading.