Bitcoin is a relatively new asset class, but in this short time, its ROI has shown significant superiority over the ROI of traditional products. According to a Finbold study, the profitability of Bitcoin investments outstrips banking stocks by more than 4,000%.

According to Finbold, over the past five years, the adoption of Bitcoin investments was on average 4,214% higher than that of the shares of leading banks. For example, the cryptocurrency surpassed Wells Fargo by 7151.86%, Citigroup by 4951.47%, and Goldman Sachs by 3101.94%. Bitcoin has overshadowed the shares of traditional banks, which have existed for decades, which underlines its huge potential in the perception of investments.

Photo: Finbold

At the same time, it should be kept in mind that the availability of Bitcoin is significantly related to the popularity and value of cryptocurrencies. Bitcoin has been particularly strong in fixing the flow of institutional investors this year. Despite short-term corrections since the April all-time high of $64,800, Bitcoin has largely retained its profits, despite constant negative media coverage.

The profitability of Bitcoin is a reflection of the fact that the asset turns into a serious defense against inflation and a means of saving. In the background of the coronavirus pandemic, traditional stocks plummeted, the economy of most countries went into recession, and central governments began large-scale printing of money, as a result of which investments went to Bitcoin and other cryptocurrencies. In the wave of massive interest in cryptocurrencies, some banks and funds began to offer their clients the opportunity to buy, sell or invest in them.

 

© 2021, Eva Fox | Tesmanian. All rights reserved.

_____________________________

We appreciate your readership! Please share your thoughts in the comment section below.

Article edited by @SmokeyShorts, you can follow him on Twitter

Follow @EvaFoxU