Bitcoin versus the S&P 500

This year alone Bitcoin has achieved impeccable growth as a stock. To date it has grown nearly 600%. And the last 3 months have contained over 150% in gains. In early February Bitcoin was only worth $1,000. That mark is far in the rear view mirror as bitcoin reached $4,483.55 on August 15th. Bitcoin has placed itself nicely in the stock market. But how does it stand up in comparison to other companies in the S&P market?

The S&P comparison


Professional investors use the S&P index to evaluate stocks. Within the last century the average yearly return rate on S&P is 9.8%. This average was achieved through 11 total sectors of classification. But Bitcoin has eclipsed that by 6,000%. After a 7 year span S&P doubled its value, but bitcoin achieved that in mere months.

S&P market evaluations are headed by 3 sectors; Financial, technology, and Industrials. The financial sector; being the most successful sector, had a growth of 29.5% in the last year. Bitcoin alone in comparison achieved over 20 times that growth. When investing in certain sectors comes into play, picking the right one will always be important if you invest yourself or utilize and investment firm.

Potential Flash in the Pan

Bitcoin is a new stock. It was started in 2009 and only reached small attention in 2013 with a  price of $266. Back then bitcoin only grew 5 to 10% a day. It was very stable then compared to now. When comparing Bitcoin stock to other investments such as the S&P this needs to be kept in mind. And if you were lucky enough to jump into and stick with bitcoin as an early stock you have been awarded greatly.

Why should people still invest in bitcoin? The answer is rather simple. The stock survived a split, and throughout it has grown even faster. New technologies have been added in the same time span with SegWit and the soon to come Lightening Network. The press news has been a great point of growth as well. Over time stabilization will occur until the next big step for the cryptocurrency. Maybe tomorrow, or next week; but the fear of a flop will always been in the eyes of those who doubt.

As of this moment bitcoin can only grow, no negatives have arisen and there is no need to fear a rapid decline in the near future.