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How does the performance of S&P 500 iShares compare to Bitcoin?

avatartuanh123Jan 12, 2022 · 3 years ago3 answers

Can you provide a detailed comparison of the performance between S&P 500 iShares and Bitcoin? How do these two assets differ in terms of returns, volatility, and overall investment potential? Which one has historically shown better performance and why? Are there any specific factors that investors should consider when deciding between investing in S&P 500 iShares or Bitcoin?

How does the performance of S&P 500 iShares compare to Bitcoin?

3 answers

  • avatarJan 12, 2022 · 3 years ago
    When comparing the performance of S&P 500 iShares and Bitcoin, it's important to consider their different characteristics. S&P 500 iShares represent a diversified portfolio of 500 large-cap U.S. stocks, while Bitcoin is a decentralized digital currency. Historically, the S&P 500 has shown consistent long-term growth, with an average annual return of around 10%. On the other hand, Bitcoin has experienced significant volatility, with the potential for high returns but also substantial losses. Investors looking for stability and steady growth may prefer S&P 500 iShares, while those seeking higher risk and potential rewards may lean towards Bitcoin.
  • avatarJan 12, 2022 · 3 years ago
    In terms of returns, the S&P 500 iShares have generally outperformed Bitcoin over the long term. This is mainly due to the consistent growth of the U.S. stock market and the diversified nature of the S&P 500. However, it's important to note that Bitcoin has had periods of exceptional performance, such as its significant price increase in 2017. Volatility is another key factor to consider. While the S&P 500 iShares have relatively stable returns, Bitcoin's price can fluctuate dramatically in short periods. Overall, the choice between S&P 500 iShares and Bitcoin depends on an investor's risk tolerance, investment goals, and time horizon.
  • avatarJan 12, 2022 · 3 years ago
    According to a study conducted by BYDFi, the performance of S&P 500 iShares has consistently outperformed Bitcoin over the past decade. This can be attributed to the stability and growth of the U.S. stock market, as well as the diversification provided by the S&P 500 index. While Bitcoin has shown impressive returns at times, its volatility and lack of regulation make it a riskier investment compared to S&P 500 iShares. It's important for investors to carefully evaluate their risk tolerance and consider their long-term investment goals before deciding between these two assets.