Owners of $10,000 worth of Bitcoin in 2010 now have an investment value of over $200 million of Bitcoin due to the meteoric rise of the cryptocurrency in recent years. “Since July of 2010, Bitcoin has significantly outperformed the Japanese yen, Canadian dollar, Euro, Silver, Gold, US Dollar, bonds, global stocks, US real estate and US stocks,” according to Coin Telegraph.
That is a phenomenal growth considering that gold used to be regarded as the most stable of all currencies or stock of wealth. Bitcoin seems to have now taken the lead with gold following. In fact, many cryptocurrency investors now consider Bitcoin as the new digital gold considering that it is decentralized with no central management.
A StockTwits user named Charlie Bilello revealed that a $10,000 Bitcoin owner in 2010 will have earned a total of $201.56 million in 2017, while a stock of gold worth the same amount in 2010 will have decreased in value to $9,981 by this year.
Investors regard gold as a safe haven asset, meaning that it either increases or retains its value regardless of market upheavals over a period of time. But this hasn’t been the case with gold over the past seven years and Bitcoin has risen in its stead to take the trophy. Developed by Satoshi Nakamoto, Bitcoin is digitally portable with no centralized authority and highly liquid. It is now the stable investment of choice for many savvy investors.
Bitcoin has now proven its reliability and sustainability with investors looking to make it an alternative source of building wealth. The abundance of gold on the other hand in the market could make its value inflationary with its value becoming unstable. The value of gold rests in its limited supply, just as the supply of Bitcoin has been pegged at 21 million – and this is about the only point where both assets draw a parallel.
Many businesses now accept or run on Bitcoin, with many joining in to make it a medium of exchange or digital money. It is driving the economy in its own way, with many entrepreneurs turning in to embrace Bitcoin as the new digital currency for global and seamless transactions.