Bitcoin is often referred to as the biggest bubble in human history due to the skyrocketing price of the cryptocurrency. This is especially loved by bankers, officials and other adherents of classic investment instruments.
However, 2020 has shown that sometimes crypto can seem like just a small analogue of the huge bubbles that form in the stock market. Over the past twelve months, at least five securities have surpassed BTC in terms of yield by a noticeable margin.
To begin with, it is worth summing up the interim results of 2020 for Bitcoin. On January 1, the cryptocurrency rate was at the level of 7195 dollars, while today it is 23 523 dollars. Taking this into account, the growth in the value of the asset is proportional to the 226 percent growth. That is, if someone invested a thousand dollars in BTC on the first day of the year, today it would be 2269 dollars.
It’s important to note, however, that the first cryptocurrency was well below its entry level in January. In March, the rate fell to the zone of 5 thousand dollars, and the local bottom, according to CoinGecko, is 5032 dollars. With this in mind, the growth of BTC from the moment of the collapse to the present day is equivalent to 367 percent.
Be that as it may, some stocks have surpassed this result as well.
Where did you need to invest?
It is worth noting that the coronavirus pandemic had a great impact on global markets in the past year. It is because of her that the shares of the fitness accessories manufacturer Peloton Interactive Inc. ($ PTON) soared 384 percent in one year. The answer to this phenomenon is simple: Due to mass quarantines, fitness clubs have closed in many countries, so consumers have begun to buy more home sports supplies more often, Cointelegraph reports.
Another place in the ranking of the most profitable stocks went to Moderna Inc. – a giant in the field of biotechnology. Moderna is developing a vaccine against COVID-19, a product currently experiencing sky-high demand. The total coronavirus has helped Moderna’s stock soar at least 619 percent this year.
The pandemic has led to massive social isolation, against the background of which the need for normal communication in various areas of life, and mainly in study and work, has sharply increased. Here software from Zoom Video Communications Inc. came to the rescue. Strong demand for online communication has given rise to 495 percent for the firm’s securities.
One of two cases not strictly related to the virus is the renewable energy company Enphase Energy. The company is still small, with a market capitalization of only $ 21 billion, but its stock generated nearly 490 percent returns in the first 12 months. Clean energy is shaping a popular market sector that will expand despite questions about how far renewables can go in replacing fossil fuels across the global economy.
The undisputed “winner” of 2020 in the stock market was the shares of Tesla Inc., a company of Elon Musk. For 12 months, their value increased by at least 850 percent. In addition, most recently, Tesla securities were included in the S & P500 stock index. Compared to Tesla, Bitcoin looks like a pretty “mediocre” investment with a 226 percent annual return.
We think the current situation turned out to be quite amusing. Still, bankers and officials often criticize Bitcoin for its too rapid growth and volatility of its rate, but in fact, even among stocks, there are enough companies that are ready to fly much higher. This means that the real reasons for criticism are not hidden in the changes in the value of the asset.
It seems to us that some simply do not want to understand the structure and principles of the blockchain, so Bitcoin and other cryptocurrencies seem to be something magical. In addition, in the case of bankers, criticism of the industry can be beneficial, because the popularization of cryptocurrencies, which allow international payments without intermediaries and at low prices, in any case, in fact, negatively affects their earnings.