Stocks, gold or crypto? The last 3 years’ returns have a surprising answer
Bitcoin delivered nearly 234% returns over three years, outperforming silver, gold and equities. However, precious metals led over one year as cryptocurrencies declined. CoinDCX data also shows Bitcoin topping hypothetical one-year SIP values, highlighting the importance of investment horizons and risk management.
Over the past three years, Bitcoin has eclipsed gold, silver, and equities, delivering a remarkable 234% return, according to data from CoinDCX. In contrast, silver gained 223.58% and gold climbed 161.14% during the same period, while the Nifty 50 and Sensex saw returns of 13.12% and 8.48%, respectively. This stark contrast in performance underscores the varying fortunes of different asset classes.
While Bitcoin has led the pack on a three-year horizon, its position shifts when viewed over shorter timeframes. For instance, silver and gold outperformed cryptocurrencies over the past year, even as Bitcoin trailed on that metric. Silver's one-year return of 42.18% outpaced Bitcoin's decline of 28.67% and Ethereum's drop of 40.93%, leaving both digital assets in the red. Equities also lagged, with the Sensex down 12.45% and the Nifty 50 falling 11.24% over the same period.
A six-month review reveals a different dynamic. Bitcoin surged 18.63% and Ethereum gained 17.09%, outperforming silver's 11.04% decline and gold's 2.30% loss. The Sensex and Nifty 50 dipped 7.70% and 7.36%, respectively. Over the past month, Bitcoin climbed 3.65%, while Ethereum slipped 0.80%. Gold and silver declined 3.55% and 7.15%, respectively, while the Sensex and Nifty 50 fell 5.27% and 5.94%, respectively.
Minal Thukral, executive vice-president and head of crypto business at CoinDCX, emphasizes that Bitcoin's contrasting one-year and three-year returns highlight the importance of considering investment horizons when assessing asset performance. This nuanced view is critical given how market cycles can shape outcomes, underscoring the value of disciplined investing and informed decision-making.
Bitcoin leads in one-year SIP returns, with a hypothetical Rs 10,000 monthly SIP delivering a Rs 11,598 gain, or 9.67%, over a year. Ethereum would have grown to Rs 1,30,491, while gold and silver would have reached Rs 1,24,483 and Rs 1,21,516, respectively. In contrast, equity benchmarks suffered, with the Nifty 50 SIP valued at Rs 1,08,405 and the Sensex SIP at Rs 1,08,161, both falling short of the Rs 1.2 lakh initial investment.
Thukral advises investors to align their asset allocations with their financial goals, risk tolerance, and investment horizon, emphasizing the importance of diversification and regular portfolio reviews.
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