"Annual Returns of Bitcoin"
(For a 4-Year Investment Period)
Focusssss😇😇
🎯1. The solid blue line (Bitcoin):
Represents the historical price of Bitcoin in US dollars (BTC/USD). We notice it rises strongly, especially between 2016 and 2021, then enters periods of volatility.
🎯2. The dashed purple line (Annual Bitcoin Return):
This line shows the annual return on Bitcoin investment for a 4-year period, which is volatile but remains significantly higher than most assets.
🎯3. The dashed light blue line (Annual S&P 500 Return):
Illustrates the annual return of the S&P 500 index for a 4-year period as well, showing it is relatively stable at around 7.8%.
🚨Conclusion:
Bitcoin, despite its volatility, offers high compounded annual returns reaching 17% or more in the long term (compared to 7.8% for the S&P 500).
However, returns have started to gradually decrease over time, indicating market maturity.🚀