careinke wrote:Gold has basically kept up with inflation at todays prices. The S&P, if it just kept up with inflation would be at $588.53. Congrats!
I bought Bitcoin at $400.00 in 2014 with the cumulative inflation rate being 23.6% my BTC would be $494.48. Right now BTC is $19,953.00 and rising. I win!!!
Seems the real loser is the US dollar...
Peace
Get back to us re crypto in a meaningful time frame for investments, like several decades.
Stocks, like the S&P 500, have a total nominal return of about 10 percent compounded annually over the past 90+ years (the index doesn't include dividends), and generally over any 3+ decade timeframe during that. Call it a 6 to 7 percent inflation adjusted compounded annual return. For something so simple and reliable over time, that's MASSIVE. And for those who hate taxes, buying something like a Vanguard S&P 500 index return, it can be VERY tax efficient. For a two-ish percent dividend (close to the long term average) and a moderate tax rate like 25%, that's only about an annual 0.5% ongoing tax payment on the capital to buy and hold it, until it gets sold.
BTC is under a third of where it was at the recent high just 4 months ago. You want a large part of your portfolio in something that volatile and unreliable? You could also "invest" in lottery tickets or going to Vegas.
And yes, clearly sticking fiat in a mattress or a safe deposit box or backyard garden hole is NOT a good investment over any meaningful time-frame. As volatile as it is, at least something like gold will tend to keep up with inflation over the long run, like it has the past several hundred years.