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Bitcoin’s Compound Annual Growth Rate Is ‘Unmatched in Financial History’, Analysis Shows

Bitcoin's Compound Annual Growth Rate Is 'Unmatched in Financial History', Analysis Shows


Bitcoin’s 10-year compound annual growth rate (CAGR) is “unmatched in financial history,” according to analysis conducted by on-chain analytics firm CaseBitcoin, which posted its findings on social media.

According to CaseBitcoin, BTC’s near 200% CAGR is an “unheard-of number” and means that BTC investors have “nearly tripled” their money every single year for the last decade, if the returns are being compounded. In terms of return on investment (ROI), this would translate to a 5.2 million percent return over said period.

CaseBitcoin, as Cointelegraph reports, compared BTC’s CAGR with that of popular stocks such as Tesla and Amazon, noting that Tesla’s CAGR is “off the charts” by normal standards at 63.8%, and is still dwarfed by bitcoin’s growth.  Amazon’s CAGR, on the other hand, is 33.5%.

The researchers further defended their analysis by pointing out that even BTC’s last decade could be a “cherry-picked timeframe.” They found that “Bitcoin’s CAGR dwarfs other benchmarks over ANY multi-year period in the past decade.” Their data compared BTC’s returns against the S&P 500 index, gold, and more.




The price of bitcoin has grown exponentially over the last 10 years. In its 12-year existence, the flagship cryptocurrency went from essentially being worthless to at one point being worth over $58,000 per coin, before a correction saw BTC’s price drop to $48,900 at press time.

While initially the cryptocurrency was adopted by those agreeing with the libertarian ideology, soon more investors started seeing potential in it. Several publicly traded firms have now invested in bitcoin, with MicroStrategy putting in over $2 billion to buy 90,869 BTC.

Next to MicroStrategy comes Tesla, which invested $1.5 billion in the flagship cryptocurrency. Other companies like MassMutual, Ruffer Investment, Stone Ridge, and Square have also allocated funds to bitcoin. As reported, last month the oldest bank of the United States, Bank of New York Mellon (NYSE: BK), has revealed it will start financing bitcoin and other digital currencies through the rollout of a new cryptocurrency custody service.

Featured image via Pexels.



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