Bitcoin has officially become the most profitable major asset in 2021. This information was published by the investment firm NYDIG, whose experts compared historical returns for a wide range of investment assets, including cash, securities, precious metals and debt obligations.
As a result, the cryptocurrency market crash in May, provoked by the ban on BTC mining in China and criticism of the digital asset industry in general, practically did not affect Bitcoin’s profitability indicators. Let’s talk about what is happening in more detail.
It is important to note that analysts compared the performance of the main cryptocurrency with traditional investment tools. At the same time, Bitcoin did not become the most profitable digital asset. As an illustration of serious profitability, we can recall the Solana project.
The native SOL blockchain token traded at $ 1.5 on January 1, 2021. At the same time, on September 9, the cryptocurrency set a historical price maximum in the $ 213 zone.
Accordingly, the exchange rate has grown more than 140 times in nine months.
How much does Bitcoin investment bring?
Today Bitcoin is trading at $ 51,000. In May, the cryptocurrency fell by almost 60 percent, but this did not put an end to the current bull run, that is, the stage of growth of the coin niche. In just a few months, the value of BTC has risen above the 50 thousand line again .
Recall that Bitcoin did this for the first time since September 7, 2021, that is, on the day BTC was recognized as a national payment instrument in El Salvador. It was then that the cryptocurrency dipped by 10 thousand dollars during the day. At the same time, after this situation, Bitcoin, among other things, fell below the 40 thousand mark – albeit not for long.
In the ranking of assets by profitability this year, Bitcoin took the first place with an indicator of 49.1 percent, overtaking commodities by 13 percent. The third place in terms of profitability was taken by shares of US companies with a low capitalization, according to Cointelegraph .
Seasonality in markets seems to be happening in the cryptosphere as well. This means that in certain months of the year, assets show the best or worst returns. As you can see in the table below, the Bitcoin profitability in September has traditionally been not the brightest for the entire existence of the cryptocurrency. But the last quarter of the year – the period from October to December – often ended with a strong increase in the price of BTC.
Since the beginning of October, the coin has already risen in price by almost 15 percent. At the same time, its bullish growth is accompanied by a gradual increase in the hash rate, that is, an increase in the popularity of BTC among miners. It signals the inclusion of more and more computing hardware on the Bitcoin network for mining and transaction processing. Recall that at the beginning of June, due to the ban on BTC mining in China, the hash rate dropped almost three times – from the peak 191 exaches per second to the local bottom at 69 exaches per second.
Over the past several months, this indicator has recovered to the values of the end of May after a collapse to a local minimum in mid-July. The dynamics of changes in the Bitcoin hash rate is shown more clearly in the chart below.
In parallel with the hash rate, the complexity of mining has increased significantly, which keeps the block creation time approximately at the same level. Thus, the rate of emission of new bitcoins remains stable, and cryptocurrency inflation is controlled. The day before, the indicator reached the values of the end of 2020.
At the same time, another change in difficulty took place last night: the indicator increased for the sixth time in a row. Now it has increased by 4.71 percent. Accordingly, miners continue to increase their capacities and network activity.
Finally, another graph is the dynamics of the profitability of Bitcoin mining against the background of its price. Here the situation is also obviously positive.
We believe that the market has shown a fairly strong desire among buyers to accumulate as much BTC as possible for an extended bull run. Even after a large-scale campaign against Bitcoin in China, the cryptosphere did not mark the beginning of a new «crypto winter», that is, a prolonged fall in the prices of all digital assets. This means that we have reason to count on the growth of the BTC price until the end of this year. We hope this will happen.