The cryptocurrency market has approached $3 trillion in 2021. However, his descent was as rapid as his ascent. After the recent market crash, the crypto market cap has dropped below $900 billion. However, it still looks more profitable when you look at it from a more distant perspective. For this, “If you had invested $100 in Tesla, Apple, Bitcoin (BTC), Ethereum (ETH) and Dogecoin (DOGE) 5 years ago, how much money would you have now?” We look at the answer to the question.
In the long run, cryptocurrencies outperformed stocks
Investors who have invested in major US indices have seen significant returns over the past 5 years. In fact, the SPDR S&P 500 ETF SPY, Invesco QQQ Trust Series 1 QQQ and SPDR Dow Jones Industrial Average ETF Trust DIA have yielded 50.48%, 94.48% and 39.76% since June 2017.
However, cryptocurrencies have yielded as good returns as investors in major US indices have had in recent years. Some cryptocurrencies even outperformed indices. Bought in 2017 and surviving the recent volatility when US markets bottomed out in March 2020, crypto and tech bulls reaped epic returns on their investments.
DOGE delivered better returns in the 5-year period!
Calculate how much US$100 invested in the following cryptocurrencies and major stocks in the summer of 2017 would be worth today.
- Tesla Inc. TSLA: $847.93
- Apple Inc AAPL: $359.75
- Amazon.com, Inc. AMZN: $211.64
- Bitcoin (BTC): $823.30,
- Ethereum (ETH): $387.41
- Dogecoin (DOGE): 1,949.08
When the returns are compared, it is seen that cryptocurrencies provide much better returns than stocks. Bitcoin parody DOGE stands out with the highest returns among the options. The performance of Tesla, whose CEO is Elon Musk, who popularized Dogecoin, is also remarkable. Tesla has doubled Apple’s revenue. Meanwhile, the performance of the leading altcoin Ethereum remains below that of the leading crypto Bitcoin.
The crypto market has been going through some tough times lately. The problems are not just about entering a bear market. Problems with the reputation of the market, such as Terra (LUNA), Celcius Network, come to the fore. Loss of confidence in the market, more than price drops, has the potential to do lasting damage. Although famous names such as Mark Cuban see the recent events as natural selection, we will see over time how right he is.
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