Nvidia's Superior Performance Over Bitcoin Unlikely to Repeat in Next Decade, Crypto Experts Predict
Summary:
Cryptocurrency experts suggest that Nvidia's performance exceeding Bitcoin in the past decade is unlikely to reoccur in the following decade. Nvidia, a producer of chips for AI, showed returns of 21,558% compared to Bitcoin's 13,048% in the last decade. Despite recent gains in Bitcoin following the approval of Bitcoin ETFs, warnings of a significant future correction are being signaled. Meanwhile, questions are raised about Nvidia's perceived high risk back in 2014 when AI and Bitcoin were less globally embraced.
The impressive past decade performance of Nvidia in comparison to Bitcoin (BTC) should not be seen as an indicator for the upcoming decade, as cryptocurrency professionals suggest its replication is highly unlikely. As Lyn Alden, an investment strategist, noted to her significant following of 686,200 on May 25, Nvidia is one of the very few assets that has outclassed Bitcoin over a decade. Nvidia (NVDA), which is a producer of chips used in the training and application of artificial intelligence (AI) models, has seen returns of 21,558% from May 23, 2014 to May 23, 2024, compared to Bitcoin's returns of 13,048%, as per Statmuse data. Swan Bitcoin’s CEO Cory Klippsten disputes that Nvidia will surpass Bitcoin in the following 10 years, with Alden affirming that she would personally choose Bitcoin over Nvidia for the next decade.
Bitcoin has offered marginally more profits than Nvidia since the approval of Bitcoin exchange-traded funds (ETFs) three months ago on Jan.10, with respective returns being 31.7% and 30.2%. Trading expert, The Kobeissi Letter, revealed that an investment of $10,000 in Nvidia shares in 1999 holds a value of $25.3 million today, as posted on May 24. Questions arise regarding Nvidia's potential heightened risk in 2014, a time when Bitcoin and AI had less global acceptance, as posed by Daniel Sempere Pico.
Co-founder of 21st.capital, known as "Sina", inhales on Nvidia, stressing that compared to AI, financial assets typically create greater ripples as their adoption amplifies. Optimistic expectations for Bitcoin's two-year prospects exist, however, warnings are circulating about a considerable correction. Previous physics professor, Giovanni Santostasi's “Power Law” model, forecasts Bitcoin's value peaking at $210,000 in January 2026 and later plummeting to as low as $60,000.
Published At
5/25/2024 4:37:02 AM
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