Did you buy bitcoin seven years ago?
Despite the current slump, you have earned more than any other investment channel (Photo: ShutterStock)
A new study by Silver Castell examined the returns of Bitcoin over the past 7 years against other investments.
2022 was eventful for the world economy and particularly challenging for the digital currency market.
For the purpose of summarizing the year, the research department of Silver Castel, an investment house for digital assets, checked what the annual investment returns were in the various investments starting in 2015.
As the data shows, when looking at investments over time, Bitcoin is the investment channel with the highest return.
The research shows that Bitcoin returns have been 'binary' over the past few years;
That is, for each calendar year in the time frame, Bitcoin was either the best or the worst investment vehicle.
From 2015 until today, Bitcoin has recorded a return of about 5000%, a much higher return than other asset groups such as: investing in the S&P and Dow Jones indices, which recorded returns of about 90% and 85% respectively.
Bitcoin, like most traditional financial markets, has boom and bust cycles.
As you can see in the table, the cycles last about 4 years on average: 3 years of increases, and a fourth year of decreases.
Bitcoin's life cycle: when does it flourish and when does it falter? (Photo: Silver Castel)
Veterans of the crypto industry will see a fairly similar correlation between 2022 and 2018: a crypto winter that began with the cyclical collapse of Bitcoin followed by companies in the field that held great promise and swept billions of dollars of customers and investors down the drain.
Similar to 2018, we see the events of 2022, especially the negative ones, as events on the basis of which a better future will be built, among other things, the regulation required both by the countries and by the crypto companies where centralization is increasing.
At Silver Castle, an investment house for digital assets, we predict in general that the year 2023, similar to 2019 in a cyclical way, is expected to be a year of organization, rebuilding and recovery of the industry.
Silver Castel anticipates a continued inflow of significant capital, with an emphasis on sophisticated investors, who will take advantage of the low prices to build a position ahead of the crossing event in March 2024.
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