Question 1

How does Bitcoin compare to traditional assets?

Accepted Answer

This chart compares cumulative returns of Bitcoin against traditional asset classes since they share a common trading history. All assets are indexed to 100 at the start date for fair comparison. Returns are calculated as percentage change from the starting price, allowing you to see how a $100 investment in each asset would have grown over time.

Question 2

Why does Bitcoin outperform stocks and gold?

Accepted Answer

Bitcoin's fixed supply of 21 million coins and quadrennial halving schedule create persistent supply shocks. Unlike stocks, Bitcoin has no earnings risk or management dependency. Unlike gold, it is easily divisible, portable, and verifiable. These properties have driven outsized returns, though with significantly higher volatility.

Question 3

What time period do the return comparisons cover?

Accepted Answer

Returns are compared across multiple time frames including 1-year, 3-year, 5-year, and since-inception periods. Longer time horizons tend to smooth out Bitcoin's volatility and show its outperformance more clearly. All data is updated daily.

Question 4

Does past performance guarantee future Bitcoin returns?

Accepted Answer

No. Past performance does not guarantee future results. Bitcoin is a volatile, high-risk asset. While historical returns have been exceptional, future returns may diminish as the asset matures and market capitalization grows. Always do your own research and never invest more than you can afford to lose.

Bitcoin vs Traditional Assets