FOMO, otherwise known as the “Fear of Missing Out,” is one of the reasons why people rush to invest in an asset. In the fourth quarter of 2017, when Bitcoin surged from around $4,000 to nearly $20,000, many investors flocked to the crypto industry in search of quick gains. But shortly after the run-up in December 2017, the digital asset crashed to $6,000 by February 2018, forcing many “so-called” experts and critics to call cryptocurrencies a bubble.
Three years later, Bitcoin has repeated a part of the circle. But this time it is different. The general outlook on Bitcoin is now positive as it has been dubbed a possible alternative to gold. But amidst the frenzy, an investment of just $10 in the digital asset in 2011 could be worth well over $627,000 today, according to recent data.
The data from Charlie Bilello of Compound Capital Advisors revealed that an investment in Bitcoin in 2011 would have yielded returns of over 6271233%. This is light years away from the second leading asset class, Nasdaq, which has only 512% within the same period. Meanwhile, the default store of value, gold, is looking at 24.3%.
In terms of returns in the last 9 years, bitcoin profits have been unparalleled. With the global economy struggling to recover from the global pandemic, digital assets are rising in popularity and are more or less becoming a safe-haven. Bitcoin, in particular, has had an amazing year.
Investment strategist Raoul Pal while sharing the data from Bilello commented that “Bitcoin is eating the world."