The Real Reason Behind Bitcoin Outperforming The S&P500, Gold, Real Estate Over The Last 10 Years

Bitcoin (CRYPTO: BTC) has outperformed other asset classes over the past decade, though market commentators highlighted its significantly higher volatility.

What Happened: In a post on X on Sep. 1, macro investor Krueger compared the nominal and inflation-adjusted returns of Bitcoin from 2014?2024 to those of the S&P 500, Nasdaq, gold, U.S. real estate, and 10-year Treasury bonds.

Using assumptions of 7% "true" inflation and a 20% capital gains tax, Bitcoin's 46% real return dwarfed that of its competitors: Nasdaq: +4%, S&P 500: +2%, Gold: +0.5%, U.S. real estate: ?1% and 10-year Treasury: ?4%.

Krueger advised investors to "pick the right weapon," arguing Bitcoin has been the clear winner.

Some respondents countered that Ethereum could also make a case as a stronger long-term play, while others noted gold's hedge value remains intact despite its limited upside.

Also Read: Bitcoin, Ethereum, XRP, Dogecoin Trade Sideways Ahead Of Labor Market Data

What's Next: Prominent professional trader Adam Bakay told Benyinga that while Bitcoin "has definitely proven itself over the year as a strong macroeconomic asset" the volatility is higher compared to S&P 500 or Nasdaq.

However, he suggests BTC deserves a portfolio allocation, especially given ETF success and rising government interest.

Bakay also warned of volatility, as with 40% historical annual swings, investors must prepare for sharp drawdowns.

If you can't tolerate a 40% loss, you're overexposed, he advised, recommending Bitcoin be balanced with safer assets such as gold or Treasury bonds.

While Bakay acknowledged Bitcoin's strong two-year trend, he expects momentum to slow toward year-end, though uncertainty remains around timing.

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