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Bank of America: Bitcoin Was The Most Profitable Investment Of The Decade

December 19, 2019
Ross Peili

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Bank of America: Bitcoin Was The Most Profitable Investment Of The Decade

According to CNN, a recent report by the Bank of America Securities suggests that Bitcoin (BTC) was the most profitable investment of the decade.

The numbers disclosed to the major media outlet apparently indicated that investing as little as $1 in Bitcoin back in 2010 would generate a profit of over 900,000% in returns in 2019, while that percentage was peaking at 1,950,000% plus in terms of ROI during the big pump of 2017/18.

Bitcoin not only outperformed every fiat and/or digital currency on the globe but it single-handed long-strong commodities and stocks including gold, real estate, and oil.






The first mass adopted public cryptocurrency is currently worth over $7,000 per piece, still attributing to some 700,000% profit for early investors, while a comparison with some of the strongest stock markets suggest that investing $1 at the same time would generate a profit of 346%, or basically make you $3.46 in 2019.  

In addition, investing in a 30-year US treasury bond would generate a profit of 208%, investing in gold would make you 134%, while investing in oil would leave you with $0.74, essentially ‘gifting’ you a -26% loss for the Christmas of 2019. 

Read More: How Widespread is Bitcoin and Other Cryptos in Late 2019?

What to expect from Bitcoin in 2020

Although Bank of America experts landed the crown of the best performing investment for the decade at Bitcoin’s doorstep, they also predicted that it is very unlikely for BTC or any other cryptocurrency to carry this title through the next decade.

2020 is an exciting yet highly unpredictable year when it comes to the global economy and financial markets. There is a boiling speculation pot that insists we’re on the verge of the next world-scale financial recession, which is expected to be similar if not worse than the one hit the markets back in 2008, essentially leading to catastrophic events in the business and political sphere, with many accredited banking institutions even rolling out of the game. 

This is highly possible due to the facts we discussed in one of our previous posts, but most importantly because everyone is now talking about an unavoidable crisis. If you compare the situation to 2008, when nobody even expected the crisis, this time could really be a dire hit for global economic stability.

Nevertheless, as we explain in our analysis, a global financial recession could actually benefit cryptocurrencies and more specifically Bitcoin for reasons tethered to its immutability, transparency, ease of storage, maintenance, and transfer, and of course its scarcity, which as time passes becomes even more rare, considering the hash-rate required to introduce new Bitcoins in the broader market, as well as the upcoming block reward halving programmed to occur in May next year.  

Read More: Blockchain Parallels the Internet

Conclusion

Bitcoin might be the best investment of the decade, but that doesn’t necessarily mean you should invest in it, at least right now.

Remember that Bitcoin grew when central banks claimed it was useless. Now that they praise it as the ‘best investment’, there’s probably a good reason behind that claim to avoid it for the time being, especially when having in mind that a broader economic decline is about to hit the markets.

Although we cannot be sure whether Bitcoin is going up or down in 2020 – I think the NYE period will determine what happens in the next 24 months – many financial analysts including Bloomberg’s BGCI experts believe that Bitcoin’s breakthrough over its past all-time-high is practically unavoidable, and altcoins will follow right after, but not before BTC breaks first.