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Bitcoin vs Stock Comparison


Recently, Binance published an extensive study of how Bitcoin price movements have performed, in the face of variation in the world of stocks. Since the beginning of 2020 there has been talk of a growing correlation between the two, but this time Binance gives the data.

Specifically, in this study they compared the evolution of certain indicators of the traditional stock market with the performance of BTC.

Before the rise of Bitcoin, the stock market had been the platform of choice for people who wanted to grow their portfolios of assets. So, understandably, when Bitcoin emerged as a rapidly rising substitute with comparable potential and volatility, the conversation turned to cryptocurrencies.

The truth is that the controversy over whether Bitcoin is what was promised in 2009 or not continues. This refers to the premise that in the face of a global economic crisis, Bitcoin would act as an almost 100% safe hedge asset.

Comparison between Bitcoin and stocks on NASDAQ 100 and the S & P500

In this evaluation by Binance, Bitcoin’s performance was compared to the NASDAQ 100 and S & P500.

The S & P500 is an index that reflects the performance of the stocks of the top 500 US companies. For its part, the NASDAQ 100 is an index that tracks the top 100 US companies.

There they comment that if someone had invested US $ 1,000 at the beginning of 2020 at this time it would be worth US $ 1,660, while in NASDAQ it would be worth US $ 1,265 and US $ 1,029 in the case of S & P500. Of course, prices fluctuate from day to day, but this is just one of the many cases that show the competitiveness of Bitcoin as an asset.

This comparison did not stop here. The Binance study also comments on the comparison of some “top tier” stocks to Bitcoin and two other popular cryptocurrencies: Ethereum (ETH) and BNB.

General comparison of the annual growth of investments in Bitcoin and other cryptocurrencies, as well as some top-notch stocks. Source: Binance
General comparison of the annual growth of investments in Bitcoin and other cryptocurrencies, as well as some top-notch stocks. Source: Binance

One of Binance’s main takeaways after making this chart is that in the year 2020 alone, cryptocurrencies can go head-to-head with some of the best front-line stocks on the market. All this in the midst of a context as challenging as the one we currently live with with the COVID-19 pandemic.

Advantages of deciding to bet on BTC according to Binance

After making this general comparison, Binance maintains that investing in cryptocurrencies and Bitcoin is more accessible considering that to access them you don’t even have to buy them in the market. In this part they comment on the possibility of obtaining BTC through group mining such as that done in Binance Pool. In contrast, the only way you can get additional shares in a company is if they initiate a stock split in their holdings.

However, this is not the only voice recommending investing in Bitcoin these days. Recently, Mike Novogratz and Dave Portnoy did something similar. In their case, the comparison they made was with gold.

Recently, with the increase in the price of Bitcoin, these estimates may be even better than those estimated by the exchange and investors like those already mentioned.

These investors have decided to test the theory that wallets containing Bitcoin and other cryptocurrencies generally outperform wallets without cryptocurrencies. So far they don’t seem to regret their position.

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