Bitcoin beats stocks in terms of yield alone, but there are a number of listed companies that beat Bitcoin
We did a little comparison using bitcoin and public companies. You can look at it in several time periods.
Between 2013 and April 2, 2021, bitcoin skyrocketed 4,638 times, staging a sensational wealth creation myth. Here’s the premise that the original price of bitcoin was very low. I knew a guy before who couldn’t find a job at home, stayed at home mining and mined a lot of bitcoins, and now he’s buying islands in the Pacific.
Between 2018 and April 2, 2021, bitcoin rose more than 3x cumulatively, dangling 98% of all public companies. Bitcoin was gradually recognized by the mainstream market around 2018. since 2018, bitcoin accumulated 3.39 times, the trend can be described as ups and downs: 2018 due to regulatory tightening once plunged 80%; 2019 before the high and then low, the first half of the rapid repair, the second half of the sharp retracement, the annual increase is still as high as 94%; 2020 and 2021 due to the global flooding, bitcoin surged 304% and 110%, respectively.
From the beginning of 2021 to April 2, MMT simply could not stop in the post-epidemic era as bitcoin reemerged into a frenzy. The external flood was so great that bitcoin broke through $60,000 to set a new record high, up 110%.
But given the huge volatility, bitcoin is not the investment of choice and is not suitable for everyone
With the risk of global central bank deflation and dollar inflation, Bitcoin’s 21 million fixed properties are considered by major institutions as digital gold to combat inflation risk. Yet for most average investors, bitcoin is not a good investment choice.
There are only two categories of people who can really make a lot of money on bitcoin.
One is the bitcoin believer, who believes in blockchain technology, in Satoshi Nakamoto, and firmly believes that a decentralized digital currency will shake up the existing international monetary system.
The second is the bitcoin speculator, who recognizes the speculative significance of bitcoin, endures the dramatic volatility at major key points in time, and ultimately earns that profit. But in general both types of people are extremely rare. I don’t make any comments on bitcoin because everyone sees this novelty differently.
But from the perspective of the average investor, such a volatile and headstrong investment target is not suitable for someone. Investors should still recognize their own position and choose a target to invest in that matches their situation.
If you do want to take the plunge on bitcoin, think about these four questions first
After the big drop many people ask if they can plunge, first recognize these four issues before making a decision.
One is the value. It is very important to have faith in bitcoin and diamonds, artwork investment logic is somewhat like, some people are very obsessed, some people snicker.
The second is volatility. The first thing to consider is whether you can withstand the huge fluctuations. It’s not at all surprising that a flash crash like yesterday’s 30% drop from 20,000 to 3,000 in 2018, a one-year drop of more than 80%, not just a cut.
Third, liquidity. 2% of accounts control 95% of bitcoin, a large number of bitcoin concentrated in the hands of a few people, poor liquidity, plummeting exchanges down to sell the situation often happens.
Fourth is the time lag. Bitcoin surges and plunges usually happen late at night, indeed money never sleeps, and if you can’t keep an eye on the market late at night, you may accidentally ride a roller coaster.