Although Bitcoin (BTC), may have seen a price fluctuation this year, it remains a better investment than some of the largest crypto stocks.
According to new data, it is still a good idea to simply buy and hold despite all the growth in Bitcoin’s industry.
Stocks can’t compete with BTC and ETH
It is obvious that holding BTC was more profitable than holding equities when looking at the stock performance for firms with the highest BTC allocations.
Zhu Su, CEO of Three Arrows Capital, stated that “Buying crypto stocks to outperform coin is difficult” and cited comparative performance data from Bloomberg.
Despite the success of both Bitcoin and Ether, they have performed significantly better than stocks from companies like MicroStrategy and Coinbase (COIN) in 2021.
Chart of crypto stocks vs. BTC vs. ETH Source: Zhu Su/Twitter
These figures show the differences between crypto and traditional markets. Crypto markets have a level of freedom of expression that was long absent in equities and commodities.
“Markets look forward. Because Crypto is not under any one’s control, it’s even more forward-looking. It’s the only open market in the world,” Pentoshi, a popular analyst and trader, stated earlier this month.
A dollar-cost-averaging strategy that involves allocation into BTC is particularly attractive for retail entities. This will mitigate short-term volatility.
BTC is a challenge to miners
Additional data from the largest publicly traded miners supports this trend.
Related: Bitcoin closes $50K — These are the BTC prices to be on the lookout for next
The vast majority of the BTC-based transactions are lower than their initial stock price and the stock price at the time they went public.
As of December, only BitFarms (BITF), is making a profit.
Comparison chart of miner stocks and bitcoin. Source: Dylan LeClair/Twitter
However, it is encouraging to see the progress made by US mining industry players. Cointelegraph reported that listing deals continue flowing in.
Texas is poised to be a major mining hub and could see power demand rise severalfold by next years.