Bitcoin Proves To Be Profitable When Measuring Annual Returns

The most important cryptocurrency in the world, Bitcoin (BTC), seems to be very profitable. Since 2011, 6 over 8 years, the virtual currency has registered gains since the beginning of the year to the end of the year.

Clearly, that is very positive if this is compared to other asset classes such as stocks or precious metals. This information has been posted by Charlie Bilello, Director of Research at Pension Partners, on Twitter on September 9.

The graphic provided by Mr. Bilello shows that Bitcoin had gains that surpassed 1,000% in 2011, 2013 and 2017, 37.5% of the years since 2011. In 2012 and 2016, Bitcoin registered annual returns of more than 100%. Only 2015 registered an increase of 35%. In 2014 and 2018 Bitcoin registered negative annual returns.

When the market experiences a 1,000%+ increase, the following year the price experiences a decline in annual returns or registers a slower growth.

For example, after 2011 when Bitcoin’s price registered a growth of 1473%, in 2012 the returns were reduced to 186%. In 2013, when Bitcoin grew 5507%, the next year it registered negative annual returns. The same is happening in 2018 after having a 2017 with more than 1300% annual returns.

In 2019, cryptocurrencies could continue their positive trend since more institutional investors could join the market. The Intercontinental Exchange (ICE) is going to launch physical Bitcoin futures in November 2018. This could clearly help institutional investors have access to the famous virtual currency.

Moreover, by 2019, the first Bitcoin ETF is expected to be approved, allowing wealthy investors to have exposure to the cryptocurrency market.

In the last years, Bitcoin has been a very profitable asset class. In the last years new developments took place and investors are placing their funds in the market. Experts remain very bullish for the future of the space and believe that the famous cryptocurrency would continue its positive trend in the coming months and years.