Key Insights:
Bitcoin's phenomenal 60% annualized return rate has beaten the USD's monetary inflation, which was 13%.
The top crypto has outperformed most of the financial markets by a wide margin.
Saylor's firm Microstrategy has announced that it has bought an additional $4.6 billion worth of BTC today.
Japanese financial giant Metaplanet follows Microstrategy and aims to raise $11.3 million for Bitcoin purchases.
Michael Saylor delivered a presentation at an event hosted by Cantor Fitzgerald, a financial asset management company. The billionaire, who is the founder and Executive Chairman of Microstrategy, showed how Bitcoin has provided an annualized return of 60% since 2020, outperforming all of the financial assets available in the US and thus beating this year's monetary inflation. In the last year, US monetary inflation has been at 13%.
In the presentation, Saylor quotes that US monetary inflation, which is currently 13%, has outperformed almost all assets in the US markets except the US Nasdaq 100 index. This means that only a few assets have outperformed inflation this year.
Among those assets, Bitcoin outperforms all others beating inflation by a wide 47% margin. In the last four years alone, Bitcoin has given 60% returns on an annual basis despite two of the last four years being extremely bearish for Bitcoin. This data was compiled by Chearlie Bilello.
The next closest competitor to beating inflation was the US Nasdaq 100 index mentioned above and the growth rate in the US economy (which is not a financial asset).
Saylor has not only given this talk for its own sake, but his company, Microstrategy, has also followed it in its true spirit. The Bitcoin giant (MSTR) has bought an additional $4.6 billion worth of Bitcoins (51,780 BTC) at an average price of $88,627.
Did You Know?
In 9/11 incident, Cantor Fitzgerald was the worst hit company, losing 658 employees as the company occupied the 101st to the 105th floors at the infamous World Trade Center in New York
Note: Monetary inflation is the erosion of a currency's buying power over a given time, say a year. This differs from CPI and WPI inflation, which measure price increases of commonly consumed goods in retail and wholesale markets.
As mentioned earlier, Bitcoin has beaten all the financial instruments available to ordinary US investors by a wide margin. Below is a list of such assets with their annualized rate of return in the last 14 years written alongside.
US Nasdaq 100 -17.9%
US Largecaps (SPY) - 13.3%
US Midcaps - 10.5%
US Value - 10.2%
US Smallcaps - 9.0%
Convertible Bonds - 8.5%
US Real Estate Investment Trusts (REIT) - 7.9%
High Yield Bonds - 4.7%
Preferred Stocks - 4.4%
Investment Grade Bonds - 3.7%
Gold - 3.6%
EM Bonds - 3.5%
Long-Duration Treasuries - 3.0%
Investment Protected (TIPS) - 2.6%
US Total Bond Market - 2.2%
EM Stocks - 1.1%
US Cash (USD) -1.0%
Commodities - Minus 1.1%
Meanwhile, the Consumer Price Index (CPI) for the same period was around 2.5%, and monetary inflation was at 13%.
Further, Bitcoin also managed to beat other high performance assets like Gold (6%), Real Estate (10%), S&P 500 (15%), and the Magnificient 7 (29%).
The Magnificient 7 includes
Alphabet (Google)
Amazon
Apple
Meta Platforms (Facebook, WhatsApp, Insta, Threads)
Microsoft
NVIDIA
Tesla
Another statistic mentioned in the presentation shows that Bitcoin has been the top-performing asset for 11 out of the last 14 years.
Bitcoin is the Top Performer in the Last 11 out of 14 Years
Bitwise, Michael Saylor
Following its practice, Microstrategy ($MSTR) has bought another $4.6 billion worth of Bitcoins (51,780 BTC) at an average price of $88,627. The purchase was probably financed by debt and other cash-equivalent methods.
The company had recently purchased $2 billion worth of Bitcoins.
As of now, Microstrategy owns around 331,200 Bitcoins valued at $9.9 billion with an average price of $39,292. $MSTR is currently valued at 75 billion.
It has also inspired several companies around the world that have been following in their footsteps, with one of the notable ones being Metaplanet, which also aims to buy $11.3 million worth of Bitcoins through debt.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.