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Comparison of investments in cryptocurrencies with classic instruments for 2019

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Comparison of investments in cryptocurrencies with classic instruments for 2019

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It seems that as we approach the middle of 2019, we gradually entered the “bullish” cryptographic markets, as over the past months the price of Bitcoin ($ 10,907; + 11.27%) and other main cryptocurrencies increased significantly.

Investors see this as a long-awaited breakthrough after a long bear market in 2018, when most large cryptocurrencies lost more than 90% of their value compared to their historical highs.

Although the crypto market is quite fascinating, many traders, investors and hlodlers may rarely think about how their crypto earnings relate to the profits that can be obtained from traditional investments and assets.

However, some traditional investment professionals are very cautious when it comes to investing in cryptocurrencies. In early 2019, legendary American investor Warren Buffet, in an interview with CNBC, called Bitcoin a “deception”.

However, it is also obvious that traders who do not want cryptocurrency risks may miss out on serious benefits.

Cryptocurrency VS. classic investment

Charlie Bilello, a well-known trader, writer and twitter player who also has more than 110,000 followers in this social network, recently published a series of tweets comparing the benefits of investing in traditional assets such as goods and S & P 500, with bitcoins and a number of other cryptocurrencies since the beginning of 2019 of the year.

Interestingly, those who invested in gold or bonds, from the beginning of 2019, would receive only + 5% income, which is 3% lower than even the worst of the main cryptocurrencies – Stellar Lumens (XLM).

Investing in stock indices, such as the S & P 500 and Nasdaq 100, would bring a fairly decent gain of + 18% and + 21%, respectively, and real estate investment funds (REIT) would give a good gain of +22% on average. Investments in oil, which this year faced some volatility, would increase by 16%.

For comparison, the third in terms of market capitalization of the cryptocurrency XRP could bring investors + 16% from the beginning of the year, while the ethereum (ETH) could turn for investors + 87% of the profits. Also the most confidential coin, Monero (XMR), could please its investors with an impressive + 98%.

The eight main cryptocurrencies, about which Bilello also wrote, could boast only a 3% increase since the beginning of 2019. However, the best player in the market was not Bitcoin, even though he was the initiator of the 2019 rally. It was a Binance Coin exchange (BNB) .

Investments in BNB at the beginning of 2019 could now turn into a huge + 479%. Similarly, lightcoin (LTC) , often referred to as digital silver, significantly surpassed real precious metals, bringing its investors more than + 320%.

Among other quite good players in the market since the beginning of 2019, the following can be noted: this is the third generation Cardano cryptocurrency with a yield of 110%; coin of the EOS dach-based blockchain, winning + 150%; Craig Wright's Bitcoin SV fork with + 140% yield.

In general, in 2019 there was a serious price increase, which somewhat offset the losses from the bear market, and now almost all investors would like to believe that the growth potential of cryptocurrency this year is still there.

Comparable winnings

It seems that, in the main, traditional assets and investments do not reach crypto in terms of their profitability, and only initial public offerings (IPOs) can be compared with the latter. A gain of hundreds of percent has recently been expected from cannabis stocks – for example, since the beginning of 2019, Cannabis TransCanna Holdings has gained a huge 586%.

In addition, the Beyond Meat (BYND) burgers production company IPO, which was founded in 2019, has grown by more than 600% since the start of public trading, becoming one of the best stock market players.

And vice versa, if during 2019 coins from the top 20 cryptocurrencies increased significantly, then the shares of Uber and Lyft, which launched their IPOs in the same year, revolve around their “listing price”.

Conclusion

Many traders, especially those who do not like to risk, still can not rush into entering the crypto market. However, from a long-term perspective, the interest income earned from crypto portfolios in 2019 would far exceed the returns from many traditional assets, and even outpace the “new and hot” IPOs.

However, there are many stocks with huge growth potential, such as Beyond Meat, and crypto investors still have to diversify their risk and explore other traditional asset classes.

Publication date 23.06.2019
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  • bitcoinBitcoin (BTC) $ 31,632.00
  • ethereumEthereum (ETH) $ 1,289.01
  • polkadotPolkadot (DOT) $ 16.18
  • rippleXRP (XRP) $ 0.262803
  • cardanoCardano (ADA) $ 0.329543
  • chainlinkChainlink (LINK) $ 22.01
  • litecoinLitecoin (LTC) $ 129.58
  • bitcoin-cashBitcoin Cash (BCH) $ 407.96
  • binancecoinBinance Coin (BNB) $ 41.36
  • stellarStellar (XLM) $ 0.250969