While market watchers await the arrival of Dow 20,000, Bitcoin, the nascent digital currency nearing its 8th birthday, make actually reach its own milestone before the Dow as it continues its multi-year bullish rally towards $1000. Over the years, Bitcoin has performed strongly with significant returns and continuing customer adoption. Of all currencies worldwide, Bitcoin yielded greater returns than any for 5 out of the previous 6 years.<\/p>\n
Over the past 5 years, the grouping of major technology companies known as FANG (Facebook, Amazon, Netflix, and Google) stocks in total have performed well, with Amazon seeing 342.02 percent 5-year returns, and Netflix seeing an astounding 1156.9 percent, and Google seeing 148.36 percent. While these familiar companies garner a majority of the attention, a 5-year technical analysis demonstrates bitcoin\u2019s long-term reliability, resilience, and propensity to provide significant returns for investors to outperform these traditional investments.<\/p>\n
An investor who invested in Bitcoin 5 years ago would have seen total returns of 22,004 percent! Given the risks of investing in the new, formerly experimental, and open-source Bitcoin Blockchain technology, it would make sense that such strong long-run returns would arise.<\/p>\n
Bitcoin is maturing as a retirement portfolio option<\/strong>: If an investor purchased bitcoin at any day other than a stretch of 11 days in late 2013, that investor would now be returning a profit. Because Bitcoin\u2019s price started at near-0 and has shown so much fluctuation and growth, it has been difficult for the average investor to involve themselves confidently. These, however, are side-effects of pricing an emergent digital asset with no predecessor. Now that the market has increased liquidity, security, and regulatory guidance, a more mature bitcoin industry is encouraging wider adoption. Ecosystem level metrics show that the Bitcoin network has been functioning well, as transactions per day have risen 258 percent over the past 2 years, while network participation fees and mining difficulty have grown similarly. In turn, investors should feel more\u00a0confident\u00a0in Bitcoin\u2019s long-term viability and existence, as it cannot be easily shut down and incentives are not aligned among stakeholders for it to \u2018go away\u2019.<\/p>\n Bitcoin technical resilience<\/strong>: Bitcoin\u2019s technical patterns of numerous ascending triangles in the graph above demonstrate the investment\u2019s resilience to prosper even through multi-year downturns. Because there will only ever be 21 million bitcoins, the scarcity of the asset class, combined with increasing demand abroad, is making its medium-term growth a safer bet. Moreover, the rapidly rising mining difficulty on the bitcoin network puts additional upward pressure on the global exchange pricing so that miners, many of whom are based in China, can meet their operational costs.<\/p>\n Bitcoin macro-economically hedges<\/strong>: Whereas the traditional assets and FANG stocks tend to cluster and correlate, bitcoin remains relatively independent of the traditional pressures such as end-of-quarter reporting, company performance, and institutional confidence of public stakeholders, which often distorts markets. Bitcoin\u00a0provides\u00a0an excellent hedge against potential downfalls of traditional assets, and is a distributed, open source project with no centralized organization or authorities overseeing its governance.<\/p>\n","protected":false},"excerpt":{"rendered":" While market watchers await the arrival of Dow 20,000, Bitcoin, the nascent digital currency nearing its 8th birthday, make actually reach its own milestone before the Dow as it continues its multi-year bullish rally towards […]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":1018,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,4],"tags":[16,60,97,17],"_links":{"self":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1017"}],"collection":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/comments?post=1017"}],"version-history":[{"count":1,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1017\/revisions"}],"predecessor-version":[{"id":1019,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1017\/revisions\/1019"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media\/1018"}],"wp:attachment":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media?parent=1017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/categories?post=1017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/tags?post=1017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}