With all of the industry’s eyes are focused on Coinbase’s Nasdaq listing, it’s time to have some fun and speculate. With the market as it is, it’s safe to assume that the initial pricing will be high, but, can that price resist a bear market? And, on another topic, will the Coinbase stock become a competitor for Bitcoin and cryptocurrencies in general? This is literally the first crypto company to go public, so a lot of questions remain in the air.
In The Last Five Years, Bitcoin and Ethereum Outperformed Every Nasdaq Stock
But, we’re here to have fun. And this Jon Erlichman tweet opened the gate for that:
Value of $1,000 invested 5 years ago:
Ethereum: $273,716
Bitcoin: $148,194
Shopify: $41,662
AMD: $28,639
Etsy: $26,388
Nvidia: $17,071
Tesla: $14,975
PayPal: $7,101
Amazon: $5,530
Netflix: $5,050
Apple: $4,799
Microsoft: $4,670
Salesforce: $3,055
Google: $3,016
Facebook: $2,803— Jon Erlichman (@JonErlichman) April 13, 2021
These numbers are not surprising, considering that Bitcoin was the best performing asset of the last decade by a ridiculous percentage. In retrospect, those numbers will make your head spin. Let’s quote Tony Spilotro for NewsBTC:
“Data shows that the cryptocurrency has outperformed every other asset over the last ten years, with a staggering 6 million percent increase. This equates to over 200% annualized returns, with the next best performer being the Nasdaq 100 at just 20% annualized returns.”
Erlichman’s chart’s main message is that, in the last five years, Ethereum outperformed Bitcoin by almost 2X. This makes sense if you consider the number of crypto projects of all kinds that are continually being built over Ethereum. In fact, the whole DeFi space was created in that period, and most of it runs on gas and ERC-20 tokens.
ETH market cap (Calculated by Tradingview). Source: TradingView.com
On the other hand, Ethereum is a newer project. Bitcoin has been continually growing for a long time and, even though it hasn’t stopped, seems to be in a consolidation state. Also, take into account Raoul Pal’s take. He’s a former head of Goldman Sachs’ hedge fund sales who studied the charts and concluded:
“The probabilities in the charts suggest that Bitcoin is likely set to be the best performing major asset in the world over the next 24 months and by a big margin.”
Let’s go back to Nasdaq and take a look at the rest of Erlichman’s chart. The first thing that pops up is AMD and Nvidia. Let’s not kid ourselves, one of the main reasons those outstanding graphic processor companies are up there is cryptocurrency mining. So, the top ten pretty much belongs to the crypto industry.
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The second thing that pops up is personal e-commerce. Both Shopify and Etsy have performed tremendously well over the last few years. The people want to sell things, and that’s a beautiful thing. What will happen when this phenomenon collides with the crypto world, though? That’s coming in the next few years. It’s coming in a big way.
The rest of the chart consists of the usual suspects, we don’t have to get into those.
The only thing left is to analyze the chart itself. For that, we consulted Eduardo Gavotti. The professional trader and host of the “Trading En Serio” podcast told Bitcoinist:
“In the rearview mirror, everything looks great. Those tweets tend to be misleading because many of those who invested $1000 five years ago, got scared and took their money out when their investing was at $1500 or at $700.”
What would you have done? How strong are your hands?