In the report, Coinbase laid out 11 quantitative indicators that depict the growth of the Bitcoin network, as well as its overall adoption, utility, and performance as an investment vehicle.
As Coinbase points out, Bitcoin has been the best performing asset of the past decade, outperforming the S&P 500 since 2013, even during one of the largest equity bull markets of all-time. This year alone, Bitcoin has vastly outperformed most major stock indices with a 132% return. For comparison, the Nasdaq 100 is up 17%, the S&P 500 is up 12% and the FTSE Europe 100 is up +11%.
Coinbase also emphasizes that investors who use a dollar-cost averaging (DCA) approach to buying Bitcoin have seen significant gains over the past few years.
DCA is an investment strategy where an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the price. While dollar-cost averaging isn’t always the most profitable strategy, the high volatility of cryptocurrencies suggest it may be especially viable.
“If you had bought $10 worth of bitcoin starting on Oct 21, 2015, and continued to do so every month for the next four years, your total investment of $480 would be worth around $3,337 today — a gain of 595% (as of 10/21/19),” Coinbase claims in the report.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.