Over the last ten years, the technology giant Nvidia has outperformed Bitcoin; nevertheless, cryptocurrency executives believe there is little likelihood of a recurrence. According to crypto executives, the fact that technology giant Nvidia (NVDA) outperformed Bitcoin during the last ten years should not be interpreted as a sign for the upcoming ten years.
Cory Klippsten, CEO of Swan Bitcoin, stated in a May 24 X post that there is “near zero chance of Nvidia outperforming Bitcoin over the next 10 years.” Investing guru Lyn Alden said on X that NVDA “is one of the few assets that has outperformed Bitcoin over a 10-year time period,” and added, “I’d pick Bitcoin over Nvidia for the next ten years, personally.”
According to Statmuse data, Nvidia (NVDA), a company that makes processors used by firms to develop and deploy artificial intelligence (AI) models, has returned 21,558% between May 23, 2014, and May 23, 2024, while Bitcoin has returned 13,048%.
Since the approval of Bitcoin exchange-traded funds (ETFs) on January 10, which was three months ago, Bitcoin has outperformed Nvidia with returns of 31.7% and 30.2%, respectively. In the meantime, a May 24 X post from trading resource The Kobeissi Letter noted that a $10,000 purchase in Nvidia stock in 1999 is “worth $25.3 million today.” Daniel Sempere Pico questioned if, in 2014, Nvidia may have been viewed as an even “riskier” investment given the lower level of acceptance of AI and Bitcoin.
“I’m not sure if anyone could have predicted the whole AI thing back in 2014, but some people were able to see the potential of Bitcoin early on,” said Pico. He said, “If we could go back to 2014, which one would we think was more risky and less obvious to achieve such incredible returns?” On X, a co-founder of 21st.capital known as “Sina” asserted, nonetheless, that as more people start using financial assets, their ripple effects tend to be more extensive than those of AI.
AI does not have network effects. claimed in a post from May 24 that “money has multiple layers of network effects.” There are cautions as well as hopeful forecasts regarding Bitcoin’s performance over the next 24 months.
On March 4, it was reported that former physics professor Giovanni Santostasi, using his “Power Law” model, predicts that Bitcoin could reach a peak of $210,000 in January 2026 and then fall as low as $60,000 afterward.