• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

How Bitcoin Compares to the S&P 500 in Terms of Returns and Risks

user avatar

by Giorgi Kostiuk

a year ago


In 2024, Bitcoin demonstrated a 111% growth, while one of the safest indexes, the S&P 500, showed a 24% increase. We will explore which of these assets is more promising for investments.

Analysis of Recent Years

The S&P 500 index tracks 500 companies with the best performance on the U.S. stock market, including giants like Nvidia, Apple, and Microsoft. The index is often considered a safe investment, although individual companies within it can outperform. Bitcoin, on the other hand, is known for volatility, with a growth rate of 1,336% in 2017 and a severe drop of 73% in 2018.

Advantages and Disadvantages of Bitcoin

Bitcoin is more volatile compared to the S&P 500. If you invested in Bitcoin in 2017, you might have waited over two years to regain your investment. The risks are high, which BlackRock affirms by advising to invest no more than 2% of your funds in Bitcoin. However, some argue that inflation makes Bitcoin a safer investment over the long term.

Conclusion: What Should Investors Choose?

The S&P 500 has shown stability by keeping pace with inflation. However, the index structure means that investments could include underperforming companies. Bitcoin offers the potential for significant growth, but the risk of decline is also high. Both assets have a place in investment portfolios depending on the investor's risk tolerance.

The choice between Bitcoin and the S&P 500 depends on the investor's risk preferences and expected returns. While Bitcoin's high returns attract daring investors, the S&P 500 remains a reliable inflation hedge.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Ethereum and Cronos Maintain Their Market Positions Amidst New Developments

chest

Ethereum and Cronos continue to strengthen their market presence through upgrades and ecosystem expansion.

user avatarAndrew Smith

Shoggoth and Boost Complete the List of Top Gainers

chest

Shoggoth and Boost registered significant gains, with Shoggoth increasing by 84% and Boost rising by 807%, highlighting ongoing interest in smaller cryptocurrencies.

user avatarJacob Williams

RaveDAO and Belong Continue to Gain Momentum

chest

RaveDAO and Belong saw notable increases, with RaveDAO rising 1364% and Belong advancing 963%, indicating strong trading activity and the potential of lower-liquidity tokens.

user avatarZainab Kamara

Alliance Games and Bitlight Show Strong Weekly Performance

chest

Alliance Games and Bitlight posted significant gains, with Alliance Games rising 195% and Bitlight increasing by 1795%, reflecting growing interest in smaller-cap cryptocurrencies.

user avatarSon Min-ho

SentisMAI Leads Weekly Gains Among Cryptocurrencies

chest

SentisMAI recorded the strongest performance, rising 1987% over the past week, reaching a market capitalization of 923 million.

user avatarAyman Ben Youssef

Mutuum Finance Set to Launch V1 Testnet on Sepolia by Late 2025

chest

Mutuum Finance is set to launch its V1 testnet on Sepolia by the end of 2025, enhancing roadmap clarity and reducing investor uncertainty.

user avatarTando Nkube

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.