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.”


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP