Bitcoin vs. S&P 500: A Decade of Growth Compared
Over the past decade, Bitcoin has demonstrated staggering growth, boasting a 63% compound annual growth rate (CAGR) since 2014. This performance far surpasses traditional markets like the S&P 500, which has averaged 11% annual returns over 40 years.
Key Metrics:
- Bitcoin’s CAGR (2014–2024): 63%
- S&P 500’s Historical Average: 11%
Bitcoin’s Annual Returns (2014–2024):
| Year | Annual Return |
|--------|--------------|
| 2014 | -56% |
| 2015 | 34% |
| 2016 | 125% |
| 2017 | 1336% |
| 2018 | -73% |
| 2019 | 92% |
| 2020 | 303% |
| 2021 | 60% |
| 2022 | -64% |
| 2023 | 155% |
| 2024 | 63% |
Source: Glassnode
Outperforming Inflation and Money Supply
Bitcoin’s 23,000%+ appreciation since 2014 eclipses:
- CPI Inflation: +34%
- M2 Money Supply Growth: +78%
- S&P 500 Gains: +156%
👉 Discover how Bitcoin’s volatility compares to traditional assets
Why Bitcoin’s CAGR Matters
- Long-Term Value Storage: Despite short-term volatility, Bitcoin’s upward trajectory reinforces its role as a hedge against inflation.
- Market Cycles: Negative years (2014, 2018, 2022) were followed by explosive rebounds (e.g., 2017’s 1,336% surge).
- 2024 Performance: Aligns with historical CAGR, signaling sustained momentum.
FAQ
Q: Is Bitcoin’s growth sustainable?
A: While past performance doesn’t guarantee future results, Bitcoin’s decentralized design and capped supply (21 million) support its scarcity-driven model.
Q: How does Bitcoin compare to gold?
A: Bitcoin’s CAGR dwarfs gold’s ~10% average annual returns over the same period, though gold remains less volatile.
Q: Should I invest based on CAGR alone?
A: Diversification is key. Bitcoin offers high growth potential but comes with higher risk than traditional assets.
👉 Explore Bitcoin investment strategies
Conclusion
Bitcoin’s 63% CAGR underscores its dominance as the best-performing asset of the past decade. While the S&P 500 provides stability, Bitcoin’s asymmetric returns make it a compelling addition to portfolios seeking growth.
For real-time data, check BTC-USD charts.
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