How Much More Profitable Are Bitcoin Investments Compared to Gold?
The experience of Strategy, a company founded by Michael Saylor, provides an opportunity to assess how much more profitable Bitcoin investments are compared to gold.
This year, the precious metal has significantly outpaced cryptocurrency in growth. From January 1 to September 29, XAU rose nearly 45%, while BTC increased only 20% over the same period. Therefore, Bitcoin’s value relative to gold has declined noticeably, and it may seem that buying digital assets is less profitable, but longer-term statistics suggest the opposite.
BTC’s Decline Against XAU
Strategy employees began buying Bitcoin in September 2020 and have since invested $47.33 billion in cryptocurrency. Investments in BTC have generated 51.2% in unrealized profit for the company, amounting to $24.23 billion.
Moments of Bitcoin Purchases by Strategy (marked with yellow circles)
Economist Peter Schiff, a gold advocate and critic of Bitcoin investors, calculated that Strategy would have increased its capital by about 30% if the company had bought XAU instead of cryptocurrency. Thus, Saylor’s organization demonstrates that over the past five years it has been far more profitable to buy Bitcoin, as digital assets brought Strategy 70.7% more profit than precious metal could have.
"Gold is a relic of the past, constrained by the laws of physics. Bitcoin is an engineering masterpiece — stronger, more technological, more resilient, and faster as a means of storing capital and projecting economic energy," wrote Bitcoin maximalist BitcoinZeus, confident that BTC will continue to outperform XAU.
See also: "Bitcoin Price Today: Recovers to $112K with Whale Support"
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