Professionals in the cryptocurrency industry argue that Nvidia’s (NVDA) past decade of outperforming Bitcoin is unlikely to repeat in the next ten years.
According to professionals in the cryptocurrency industry, the fact that the technology company Nvidia (NVDA) has outperformed Bitcoin over the course of the past 10 years should not be considered an indicator for the future ten years because it is highly improbable that this will occur again.
Swan Bitcoin CEO Cory Klippsten suggested in a May 24th article that there is almost no chance that Nvidia will outperform Bitcoin over the next ten years. Lyn Alden, an investment consultant, made the following statement after pointing out on X that Nvidia “is one of the few assets that has outperformed Bitcoin over a 10-year time period.
I would personally choose Bitcoin over Nvidia for the next ten years,” Alden said. Nvidia (NVDA), a company that manufactures processors used by businesses for training and deploying artificial intelligence (AI) models, has returned 21,558% between May 23, 2014 and May 23, 2024, according to data provided by Statmuse, while Bitcoin has returned 13,048%.
Bitcoin Outpaces Nvidia Since ETF Approval
Since the approval of spot Bitcoin exchange-traded funds (ETFs) on January 10, Bitcoin has generated slightly larger gains than Nvidia throughout the last three months, with returns of 31.7% and 30.2%, respectively. This is due to Bitcoin’s ability to outperform Nvidia. Meanwhile, The Kobeissi Letter, a trading site, reported in a May 24 piece that a $10,000 investment in Nvidia stock in 1999 is “worth $25.3 million today.
A point was raised by Daniel Sempere Pico on whether or not Nvidia may have been seen as an even more “riskier” investment in the year 2014, when both Bitcoin and artificial intelligence were experiencing less broad acceptance.”I don’t know if anyone could have predicted the whole artificial intelligence thing back in 2014, but there were some people who could already see Bitcoin’s potential,” Pico stated.
It’s just that the AI thing never really took off. I wonder which one we would think is more risky and less obvious to achieve such incredible returns if we were to go back to 2014,” he added. “It would be a question that we would ask ourselves.”On the other hand, a co-founder of 21st. capital, who goes by the moniker “Sina” on X, contends that financial assets, in general, have a domino effect that is more widespread than that of artificial intelligence as more people begin to use them.
In artificial intelligence, there are no network effects. A May 24th piece asserted that money possesses numerous layers of network effects. Even though there are optimistic forecasts regarding the performance of Bitcoin over the next twenty-four months, there are also cautions that a large correction is on the horizon. A former physics professor named Giovanni Santostasi, using his “Power Law” model, predicts on March 4 that Bitcoin might reach a high of $210,000 in January 2026 before falling to a low of $60,000 thereafter.