Standard and Poor’s – the leading index provider of the world and the foremost source of independent credit rating comes up with the list of best performing stocks regularly. S&P-500 is the collective of the best performing 500 stocks of the US which is considered to be the most accurate method to assess the health of the US stock market, and a key indicator of the large cap stocks. While the benchmark group of S&P 500 stocks is observed to regularly return nearly 10% in terms of the stock market ROI, this figure simply goes to insignificance compared to the astronomical returns on investments provided by cryptocurrency investments.
The obscure nature of bitcoin’s beginning makes it hard to get accurate information about its pricing. However, halfway through the year 2010, it was priced at nearly $0.05 per bitcoin. Its price rose to $754.931 on 05 December 2016.
Given below is the pictorial representation of how much you would have got in returns by investing $1000 in the USA’s top fifteen companies, 10 years ago. (Image Source: www.cnbc.com)
Becoming millionaire with crypto currency investments
If we compare bitcoin’s current value of $11695 as on 05 December 2017 with its last year’s value of $754.931 (05 December 2016), it comes to an impressive rise of 1449.14%, which puts returns offered by the traditional forex stocks into oblivion. So, it’s no brainer to figure out how the highly lucrative practice of bitcoin investment has revolutionized the whole financial industry and made overnight millionaires. Cyber security expert John McAfee says that Bitcoin is likely to touch $1,000,000 pricing within next three years, and if this happens, total market share of bitcoin would be astronomical.
The below data compares the performance of some of the leading crypto currencies, over a period of One Year. We have compared their performance as on 05 December 2016 and TODAY, 05 December 2017, the day this piece is being written. Notice that this is within one year period and not over a ten year period as the stock market demonstration.
Outside of this list, there are also many newer currencies offering their own peculiar advantages. They sometime wave in and out of the list, such as Storjcoin X and Lisk. Some other atlcoins have made even higher growth in value.
Here are the key inferences from the above cryptocoin’s performance data over a year:
- Bitcoin worth $1000 on 05 December 2016 would be worth $15 491.48 today (1449.10% increase).
- Ethereum worth $1000 on 05 December 2016 would be worth $63 853.9 today (6285.30% increase).
- Litecoin worth $1000 on 05 December 2016 would be worth $28 410.06 today (2741% increase).
- Dash worth $1000 on 05 December 2016 would be worth $88 835.63 today (8783.50% increase).
- Feathercoin worth $1000 on 05 December 2016 would be worth $66 909.09 today (6590.90% increase).
The above two pictorial representations provide a quick snap shot of the US economy over Ten Years, and that of the crypto currency markets over One Year.
Some noticeable inferences:
- $1000 invested in Amazon 10 Years Ago would be worth $12,398 today, while $1000 invested in Bitcoin just One Year ago would be worth $15491.48 today.
- $1000 invested in Apple Inc. Ten Years ago would be worth $6,228 today, while $1000 invested in Bitcoin crypto currency just One Year ago would be worth $15491.48 today.
- $1000 invested in Walmart Ten Years ago would be worth $1,931 today, while $1000 invested in digital currency Bitcoin just One Year ago would be worth $15491.48 today.
Bitcoin’s value appreciation in one year staggeringly surpasses the stock value appreciation of some of the USA’s top performing companies in the past ten years. Other crypto currencies like Ethereum, Dash, Litecoin and Zcash too have performed exceptionally well compared to the traditional stocks.
This way, crypto currency investment makes a lot of sense, if you wish to gain astronomically in short terms. Going by the trend, crypto currency investments may make the traditional stock trading less profitable, cumbersome and even obsolete.
Here is the crux of all the raw data
A comparative analysis of the traditional stock trading and crypto currency markets clearly shows that crypto currency investments offer extremely high returns in the short and long terms, provided the investor has high tolerance to their risks and volatility. $1000 invested in crypto currency a year ago would have given you four figure returns, anything from 1449% increase (Bitcoin) to 8783% increase (Dash), while hardly any of the stocks could touch the three figure increase in last 10 years, with exceptions being Amazon and Netflix that witnessed a growth of 342.02% and 1156.9% respectively in the recent 10 years. Comparing the investment of $1000 in stocks markets 10 years ago and crypto coin investment of $1000 in one year, you would have got much better returns on the crypto currency investments of one year, compared to that of stocks capital in 10 years.
Bitcoin’s staggering growth into prominence
An asset often described in tandem with the dark web a few years ago, Bitcoin now has earned the unrivalled optimism and legitimacy among the crypto investors, with the asset being valued at $15491.48 as on 05 December 2017.
The world’s largest futures exchange, Chicago Mercantile Exchange said that it would soon offer Bitcoin futures. This will increase the interest of institutional investors in the bitcoin markets, and eventually help in increasing its liquidity and stability. NASDAQ and Cantor Fitzgerald are also reported to be considering to launch bitcoin futures exchange.
Since stock market investments offer slower growth rate, they provide greater degree of diversification. As crypto currency is highly volatile and its fundamental nature differs wildly with that of the traditional stocks, large cap stock investments, though slower moving, turn out to be far more stable compared to the highly volatile crypto markets.
If you wish to have stable investment with consistent and slower returns, then go for the classical stocks. However, if you are open to investing in speculative assets with extremely high returns in a short period of time, Cypto King Bitcoin and other smaller tokens are good choice to go for. Altcoin’s global nature, portability and security are attracting the investors who would have otherwise gone for the hedging investment in gold or silver.
ICO tokens have some compelling benefits over the conventional equity financing.
Here are these:
Altcoins have very high liquidity compared to the private company stocks that are almost illiquid. Crypto currency markets are relatively more transparent, allowing the participants to view global asset prices of their tokens in near real-time, while stock transactions are usually complex and slow. Despite some drawback of tokens like little regulatory certainly (in fact, you might be unknowingly breaking the law of the land), being tax inefficient for the issuers, and the risk of entire crypto investment getting sucked in case you lost your Private Key, or your digital wallet is otherwise compromised, more and more investors who do not have even the technical depth to evaluate a White Paper are drawing to token sales, due to their ability to deliver extremely high returns in short terms.
Some top-tier investors have placed their bet that token sales will eventually replace the traditional venture capital financing.
Understanding the basic dynamics of ICOs and IPOs
Initial Coin Offering or ICO is a means of crowdfunding, which involves the creation and selling of digital coins on a blockchain distributed public ledger. ICO is launched by the companies to fund project developments. It is akin to Initial Public Offering or IPO of the stock markets, in which a company issues shares for the first time, to collect funds for business expansion. While there is no regulatory oversight for the ICOs as the law is still evolving, IPOs have comprehensive regulatory obligations. ICOs typically have short duration of offerings while IPOs come with lengthy duration offerings. While IPO promises to share the dividends from the company’s profits, on the other hand, ICO tokens do not offer dividends. It’s instead a promise of the future profits of the company shared to Altcoin holders. While IPOs are open only to the accredited investors, ICOs can be purchased by anyone with internet connectivity. That is what fascinated average people to join the investing and trading.
Whether you wish to invest in ICO or already tradable altcoin tokens, exercise due diligence or read our articles, carefully weigh the pros and cons of each option in relation to your condition and tolerance to risk, before making a final investment. We are here to help you choose the best tokens to participate in.