2020 is no exception to the rule that putting $1 into Bitcoin nets investors more than traditional assets.

Bitcoin (BTC) still beats gold as an investment in 2020 despite the precious metal generating its biggest returns in a decade.

In a knock to gold bugs, data shows that despite gold’s run this year, Bitcoin still trumps every macro asset when it comes to investment profits.

Bitcoin “quietly eating the financial world”

Fresh off its second best quarterly close on record, Bitcoin is up almost 50% in 2020, while gold has managed just half of that — 25.6%.

The S&P 500, an index with which Bitcoin has shown considerable correlation, is just 5.5% higher than at the start of January. Despite its increasing strength, the U.S. dollar has netted savers just 2.2% year-to-date returns, while oil is the big loser, with WTI crude down by almost 35%.

Chart

Bitcoin versus gold historical chart. Source: Skew

For popular statistician Willy Woo, zooming out to examine Bitcoin’s returns versus gold since the cryptocurrency’s inception in 2009 compounds the case for holding BTC.

Chart

The numbers would appear to speak for themselves. $1 of Bitcoin purchased even one year ago would have netted its owner $0.31 profit, while gold would have got $0.27. 

Prior to the end of 2017, when BTC/USD began consolidating after reaching $20,000 all-time highs, the differences are much more palpable. $1 invested five years ago is now worth $44.43, while $1 of gold is worth $1.67, according to Woo’s figures.

United States' national debt hits $27 trillion

As Cointelegraph reported, Woo has stated that he believes Bitcoin will soon decouple from gold and other traditional markets to carve out a price trajectory of its own.

The cryptocurrency has weathered criticism from gold bugs as much as ever during 2020’s market volatility, with serial gold bug Peter Schiff among its most vocal naysayers. Schiff has toned down his skepticism in recent weeks, focusing on the U.S. dollar and the state of the country’s economic debt.

U.S. total debt has now passed $27 trillion for the first time in history, according to the U.S. National Debt Clock.

“The National Debt just past $27 trillion, up about $7 trillion since Trump took office. If [Donald Trump] serves just one term he will likely add more to the national debt in 4 years than Obama did in 8,” Schiff wrote on Oct. 6.

“What's worse is that [Joe Biden's] 1st term may add more than both combined.”

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

What Shiba Inu price needs to do to trigger a breakout

What Shiba Inu price needs to do to trigger a breakout

Shiba Inu (SHIB) price is seeing a bit of a pullback and could drop even further in search of support after bulls failed to keep their act together during the recent rally and began grasping at early profits. 

More Shiba Inu News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price shows promise that it is ready to trigger a massive run-up as the first half of the year comes to an end. There are three reasons why investors should be bullish on Ripple.

More Ripple News

Is Cardano’s Vasil hard fork a ‘sell the news’ event?

Is Cardano’s Vasil hard fork a ‘sell the news’ event?

Cardano price looks like it will face a massive amount of selling pressure that could lead to choppy price action. However, the fundamental side of things looks good for ADA considering the recent update regarding the highly anticipated Vasil hard fork.

More Cardano News

New sources affirm USDD is on a path to collapse like Terra’s UST

New sources affirm USDD is on a path to collapse like Terra’s UST

Tron launched its stablecoin USDD in May, at the same time as Terra’s sister tokens LUNC (formerly LUNA) and UST were imploding. The stablecoin recently detached from its $1 peg, sparking fears of a crash. 

More Terra News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP