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Saving in Bitcoin 73% more profitable over last 5 years versus S&P500

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Despite falling to its lowest level in 18 months, Bitcoin (BTC) is still at least 73% more profitable than major investment products such as the S&P 500, gold, Dow Jones and active ETFs. PIMCO bonds. Saifedin Ammousauthor of The Bitcoin Standard.

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Ammos posted a simple calculation on social media that assumes the person has saved $100 a month over the past five years. If they had invested that amount in bitcoin, the investment would be $29,212 today.

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The closest and most profitable option for Bitcoin would be the S&P 500, which would be $7,743 today, 73% lower than Bitcoin.

In it for a long time

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Ammous acknowledges that bitcoin can be unprofitable in the short term, which is why traditional investors tend to view it as a failing asset as they tend to think in three-month periods.

If an investor can look beyond the short-term gains offered by daily volatility, they can see the long-term stability and profitability of Bitcoin.

Ammos says:

“Anyone who believes that bitcoin has failed as a way to beat inflation needs to imagine how his portfolio allocation has outperformed bitcoin over the past five years and, more importantly, how he intends to outperform it over the next five years.”

Bitcoin is the only option

Ammos concluded his topic by evaluating possible investment options that can be used as a hedge against inflation. He determined why each was useless as inflation insurance and said:

“The choice is bitcoin or poverty.”

Low-risk investment behavior, saving money continuously over many years, results in a loss of value against the backdrop of rising inflation.

Chasing short-term profits by going short can provide high returns immediately, but is not sustainable in the long run. Therefore, it cannot offer adequate protection against inflation.

Commodity money varieties such as gold also do not provide enough returns for many years to fight inflation, as can be seen from the simple calculation above.

Bitcoin is expanding in the future

A recent Blockware report examined the pace of disruptive technology adoption and concluded that Bitcoin has not yet even begun its adoption journey.

The report expects Bitcoin to enter a period of exponential growth by 2030. Bitcoin will become the standard technology as its supply continues to halve. As a result, a significant price peak is expected for Bitcoin.

Bloomberg senior commodities strategist Mike McGlone also agrees with the above expectations. After analyzing the market and adoption rate, he expects bitcoin adoption to skyrocket in the near future, pushing prices up to $100k by 2025.

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