Want to Retire Early? Include Bitcoin in Your Investment Portfolio

Annualised return of 230% over 10 years. Get ready for a stellar 2021

Image source: The Conversation (Fair Use)

Ten years ago, if you put aside $4 for that cup of Starbucks tall coffee into Bitcoin, you’d be sitting on a whopping $688,050 today. Insane right?

That’s an annualised return of 234%. Compare that with:

• stocks (10.5% for the S&P 500 index),
• real estate (3.8% for US median house price) and
• bonds (0.7% for the Vanguard BND Total Bond Market ETF).

This made Bitcoin’s return orders of magnitude above equities, real estate and bonds. To see this better, we can standardise the above figures and compare how each of these assets have grown from a hypothetical investment of $100.

Check out the sister article on the Power of Compound Interest.

A single dollar put into Bitcoin in 2010 could get you a house today. A hundred dollars and you could retire right now, whatever your age.