According to the most recent Goldman Sachs statistics, Bitcoin has reinforced its place as the go-to store of value for many investors.
According to the bank’s 2021 return scorecard, Bitcoin beat all capital markets last year, including worldwide indices such as the S&P 500 and Nasdaq, as well as equities such as FAAMG. Gold, the traditional go-to store of value, returned only 4% and is becoming increasingly unappealing to investors.
Gold is losing its hegemony as a store of value, as Bitcoin delivered excellent and consistent gains in 2021.
Last year’s market volatility produced some unexpected winners in the crypto business, with unique meme coins leading the way in terms of profits topping several thousand percent in certain cases. Bitcoin’s low profits of roughly 60% had almost completely eliminated it from the minds of most crypto investors in the world of Flokis and Shibas.
Zooming out and changing angles, however, reveals that Bitcoin is gaining popularity among traditional investors, many of whom now perceive it as a go-to store of value asset that has outperformed all capital markets.
According to the Goldman Sachs 2021 return scorecard, Bitcoin returned more than 60% last year. As a result, Bitcoin has risen to the top of all capital markets, including benchmark and thematic equities baskets. Global indices such as the Nasdaq, the Russell 1000, and the S&P 500 all returned less than 30%.
Even high-value equities combinations, such as FAAMG, underperformed Bitcoin in 2021, with gains of only 37%.
Gold, on the other hand, was the greatest loser on the Goldman Sachs scorecard. It scored in the bottom, directly close to 10-year Treasury bonds, with a return on investment of 4%. This is consistent with the general market stance toward gold, which has seen an increasing number of investors abandon the asset class as their primary store of value.