Bitcoin’s compound annual growth is ‘an unheard-of’ 200% CAGR

Bitcoin (BTC) has delivered returns that are “unknown” in history and ultimately left Tesla stock in the dust.

This comes from new data from the on-chain monitoring resource CaseBitcoin, which this week examined Bitcoin’s astounding Average Annual Growth Rate (CAGR).

BTC-Hodling: 10 years, 5,200,000% return

Known among crypto and traditional investors alike, CAGR is often overlooked as an overly simple measure of Bitcoin’s performance compared to other assets.

In its twelve-year existence, however, the largest cryptocurrency has achieved so much that it has actually surpassed everything by an order of magnitude. It hardly fits on the scales.

As CaseBitcoin sums up, Bitcoin’s 10-year CAGR is 196.7% “unmatched in financial history”.

“This is an outrageous number. This means that Bitcoin has returned nearly 200% (almost three times your money) every year for 10 years, * compounded *, ”the company wrote in a series of tweets that accompanied the numbers.

“In terms of ROI, the ROI is 5.2 * million *% over the decade.”Bitcoin 10-year CAGR chart. Source: CaseBitcoin / Twitter

The CAGR is calculated using the return on investment (ROI) between two dates and the determination of the average average return per year.

CaseBitcoin compares Bitcoin with gold, the S&P 500, the Nasdaq Composite Index and long-standing US government bonds as well as Tesla and Amazon stocks and shows to what extent Bitcoin has played in a different league – and has been since its inception.

In second place after BTC, for example, is Tesla stock with a 10-year CAGR of 63.8%. In third place is Amazon with 33.5%.

“Ok, but Bitcoin was tiny 10 years ago, and maybe 10 years is a cherry-picked timeframe …” added CaseBitcoin to defend CAGR as a valuable benchmark.

“Nah. Bitcoin’s CAGR dwarfs other benchmarks in EVERY multi-year period over the past decade.”Bitcoin Multi-Period CAGR Comparison Chart. Source: CaseBitcoin / Twitter

Saylor predicts gold “demonization”

The blatant numbers fuel an existing narrative among some of the most famous and exposed investors in the Bitcoin world. Notably among them is MicroStrategy, which this week expanded its existing stack of over 90,000 BTC.

In August 2020, when the company first announced the move to its treasury from cash to Bitcoin, CEO Michael Saylor emphasized the fact that nothing offered Bitcoin comparable returns or protected capital from cash inflation. Today his argument is no different.

“Bitcoin has outperformed gold by 100 times over the past decade,” said a tweet on Monday.

“The next decade will see the full digital conversion of gold to bitcoin and the demonstration of the precious metals asset class.”

MicroStrategy is nowhere near the first to recognize the potential of long-term Bitcoin investments. Cointelegraph reported on the CAGR outlook ahead of its 2017 bull run to $ 20,000.

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img

You might also like...