I Analyzed the Compounding Effect of BTC and S&P 500, and Oh My God…

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I Analyzed the Compounding Effect of BTC and S&P 500, and Oh My God…

I Analyzed the Compounding Effect of BTC and S&P 500, and Oh My God...

I'm not going to waste your time, so here's everything briefly.

  • Since 1957, the S&P 500 has delivered an average annual return of 10%.
  • Bitcoin has shown an average annual growth rate of around 100% since 2011. Though its growth has slowed to an average of 46.59% since 2017, Bitcoin still offers substantial upside. For a conservative estimate, I used a 40% annual growth rate.
  • Over 10 years, a $10,000 investment in VOO, which tracks the S&P 500, would grow to $25,937.42—roughly 2.6 times the initial amount. The same investment in Bitcoin could potentially grow to $289,254.65, achieving a nearly 29-fold return.
  • Looking at a 20-year horizon, $10,000 in the S&P 500 could increase to $67,275. In contrast, the same investment in Bitcoin could exceed $8.3 million.

https://preview.redd.it/janlrivgsgvd1.png?width=1580&format=png&auto=webp&s=c62807b3485aedc9e9c06fef8e7568b448c3e506

  • If you're extremely conservative and want minimal exposure to Bitcoin, then over the past five years, allocating just 25% to Bitcoin and 75% to the S&P 500 would have doubled the returns compared to a full allocation to the S&P 500. A balanced approach, with 50% in each, would have resulted in more than triple the growth.

https://preview.redd.it/5zezk9vhsgvd1.png?width=1600&format=png&auto=webp&s=fa277b157330dc83baf7eebde6f8cc7c131ae44c

submitted by /u/doctorbirdee
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