Bitcoin, can it be a "performing" asset?

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(Edited)

Introduction: What is a performing asset?

  • I was surprised at a recent networking meeting of investors, that the prevailing attitude was that Bitcoin was not a performing asset.
  • It seems that most of people there, defined a performing asset as something which puts money in their pocket every day, week, month, quarter, etc...
  • They referred to Bitcoin as an appreciating asset, when held long enough, would increase in value, but did not put money in your pocket.
  • However, I asked them does not accruing value, which allows you to borrow money against an asset, and put money in your pocket, tax free, constitute performance?
  • I further said, doesn't waiting for the asset to continue appreciating, and then borrowing against it's now greater value, to put tax free money in your pocket, constitute continued performance
  • They looked at me perplexed that I would suggest such an action.
  • I looked at them perplexed, that they did not already know about that strategy.
  • I continued by giving an example: I talked of Elon Musk borrowing against his Tesla stock to fund his lifestyle, instead of selling Tesla stock to fund his llifestyle, and I, no We could do the same with Bitcoin.
  • But my ideas drew only blank stares and I felt like I had wondered into the wrong class on a college campus. I was looking for French class and wandered into a latin class. Just like a latin class, they were only interested in a dead language. But perhaps you are interested in something alive, growing, changing and evolving. Something like Bitcoin.

Performing Asset- a definition

A performing asset is one that consistently generates income or provides a reliable financial return. In essence, it's an asset that actively contributes to the overall financial well-being of its owner. "
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Bitcoin

https://img.leopedia.io/DQmbmvJGiQ1rpBcvfq3NRj6xVizFTEjgTJTFFbSXkhZAZ9q/BT_Cvs_Traditional_cover_a9447d0307.webp
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Body : Does Bitcoin improve your financial status?

  • So is Bitcoin a performing asset?
  • Does it provide a reliable financial return?
  • Does Bitcoin improve your financial status?

Bitcoin Returns in Pictures: charts, graphs, bar graphs

Bitcoin is one of the top assets in longterm appreciation.

Bitcoin was the best-performing asset of the decade, returning ten times more than the NASDAQ 100.

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https://img.leopedia.io/DQmW4ehRLNdBeEvhphYhFSMrQiDRrr7DPSnLstDn4ZSYPKy/BT_Cvs_Traditional_spreadsheet_ba5dbf6267.webp
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Bitcoin Chart

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Bitcoin Bar Graph of Yearly returns for ten years

Bitcoin versus other high performing assets for the last ten years

Bitcoin Returns in words

  • Bitcoin has appreciated in value, over time, to become a very high performing asset.

  • Let us explore this briefly.

To put this into perspective even further, if you had invested $100 in Netflix a decade ago, you’d see a return of about $4,011. On the other hand, if you had invested $100 in Microsoft over the same period, you’d only be seeing a return of about $1,312. However, had you invested in Bitcoin, you’d have seen a return of over $18 million by now.

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In the last 13 years, the Bitcoin index (in EUR) had a compound annual growth rate of 103.49%, a standard deviation of 152.72%, and a Sharpe ratio of 0.83.

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Bitcoin Returns History: Since 2011, the cumulative growth of Bitcoin has exceeded 20,000,000%, far surpassing the cumulative growth of 541% for the Nasdaq 100 Index and 282% for major US stock indices.
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When considering annualized returns, Bitcoin's rate of return stands at 230%, which is 10 times higher than the second-best performing asset class, the Nasdaq 100 Index. Over the same period, large US stocks experienced an annualized return of 14%, high-yield bonds saw a growth of 5.4%, and gold had a return rate of 1.5%.
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Last words

Bitcoin as a Performing Asset

  • It appears, that bitcoin is indeed a highly performing asset, and that buying and holding Bitcoin improves your financial situation.

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15 comments
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There are some great arguments in this post. As far as I'm concerned, I think Bitcoin is a good investment, in fact today I would say that it is an investment that an investor absolutely must make. I don't think it will become a currency that we will exchange every day, but in my opinion we should consider it as a store of value !LADY

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I agree, and we are watching people and institutions discover these facts.

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It is just a matter of time and I am really so sure it is just a matter of time before we see the Manifestation of the full potential of bitcoin

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I find your writing here quite thought-provoking. You make a strong case here about Bitcoin being a valuable asset because it increases in value over time, allowing me to borrow money against it if needed🤔. This changes my perspective on what makes an asset "performing".

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