Following the recovery of Bitcoin (BTC) and other major cryptocurrencies in April 2019, the number one cryptocurrency by market cap is doing better than the stock market, gold, real estate, oil and gas.
Bitcoin which broke it’s over four month resistance level to hit $5000, rallied from $4,130 to over $5000 in the first week of April and is currently poised to hit $6000 next with analysts’ predictions still strong on the $100,000 per bitcoin possible by 2020.
Bitcoin has soared over 41 percent in value since the beginning of the year from a price of $3,760 on January 1, 2019 to $5,307 at this time with a market cap of $93.76 billion; BTC/USD remains in a range between $4800 and $5300.
The cost of oil has been significantly high in 2019 making it a top-performing asset due to an increase in demand by consumers and the US trade sanctions especially against Venezuela and Iran hence the positive performance of oil prices.
A barrel which traded for around $46.3 in January now trades for $63.4 currently, a 37% increase since the beginning of the year with those invested in oil seeing strong gains on their investments.
In 2019, the three major indices: Nasdaq (for tech companies), S & P 500 (for 500 largest US companies) and Dow Jones (industrial average) are all up by double figures of 20.5%, 16% and 14% respectively.
Good returns after the decline of December 2018 but still not up to Bitcoin’s ROI.
Second to stocks, real estate indexes have also increased. From income producing properties such as office buildings, hotels and other real estate properties, there has been an impressive growth of over 17% on average.
Overtime, Gold has been a great store of value and Bitcoin’s tangible value competitor. Investors generally buy gold as a way to diversify risk and hedge against other assets with greater risks.
However, this year gold is performing badly; from its 10 year annual 4.8% increase to a current plunge by about 0.4% since early 2019, Gold is way off Bitcoin’s 41% returns.
In all, Bitcoin at this time is the best performing asset of 2019, a feat which it has maintained for a decade; outperforming major tradeable assets like bonds, real estate, oil, gold, Nasdaq, S&P 500.
Despite its huge volatility and the fact that current performance does not guarantee future returns, analysts and the cryptocurrency community express confidence in its growth potential to become a pronounced asset and investment class like gold and stocks.
What are your thoughts on this? Which other assets do you invest in?