• 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

SEC Takes Action Against Cryptocurrency Fraudsters

chest

The SEC has charged seven entities for defrauding retail investors of over $14 million through fake cryptocurrency trading platforms and WhatsApp investment groups.

user avatarNguyen Van Long

Cardano Founder Discusses Solana's Speed vs Ethereum's Strategy

chest

Charles Hoskinson discusses the competitive dynamics between Solana and Ethereum, emphasizing Solana's speed and agility versus Ethereum's methodical approach.

user avatarSatoshi Nakamura

Territorial Disagreements Continue to Stall Peace Talks

chest

Ongoing territorial disagreements continue to stall peace negotiations between Russia and Ukraine.

user avatarRajesh Kumar

US Envoys Meet with Putin to Discuss Peace Framework

chest

On December 2, 2025, US envoys Steve Witkoff and Jared Kushner met with President Putin in Moscow to discuss a 20-point peace framework aimed at addressing ongoing tensions between Russia and Ukraine.

user avatarJesper Sørensen

Steak n Shake to Implement Bitcoin Payments Globally

chest

Steak n Shake announces the implementation of Bitcoin payments globally starting May 16, 2025, aiming to reduce processing fees and enhance customer engagement.

user avatarFilippo Romano

OKX CEO Announces 10 BTC Bounty Amid Wallet Security Allegations

chest

Star Xu, CEO of OKX, announces a 10 BTC bounty for evidence of a potential backdoor in the OKX Wallet amid security allegations.

user avatarLucas Weissmann

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.