Looking back from 5 years to date August 16, 2021. Which one produce a better result. Would you prefer gold or bitcoin. The answer will always depend on your risk tolerance.
Let’s check at the chart below : On August 16, 2021 Bitcoin was price from 500 to 600 USD and rise more than +/- 2400 % on December 2017 but then it loss +/- 85% of its value the following year then it goes up a little and comes the pandemic bitcoin drops almost +/- 45 % in just two days in March 2020. But then Bitcoin rallies back and even broke out from 2017 all-time high and create a new all-time high of almost +/- 60 000 USD/ BTC, An almost +/- 1500 % up then corrects almost 50% . Currently Bitcoin rise almost +/- 7000% from August 2016 to date.. Will it continue to rise or it will going to drop? I think nobody knows what we know is its footprint only.
Let’s check at gold chart below: On early half of 2016 Gold was price from 1100 to 1200 USD since then it rise 20% to 40% but then correct 16% to 20% and on August last year it prints its new all-time high at +/- 2000 . That’s an almost +/- 75% rise from 2016. Currently it is now +/-50% from 2016. Will gold sore higher from here or go down? Still nobody knows.
Comparing the two bitcoin has a higher return +/- 7000% as compare to gold return of +/- 50% from the past 5 years but then bitcoin has a bigger drawdown of +/-85% as compare to gold +/- 20% drawdown. Who will going to dominate bitcoin or gold or the two cannot be compare. Will, always manage your risk and invest only what you will intend to loss. We cannot predict the future but only we can study and look back on the past.
Note: This is not a financial advice but for educational purpose.
