When former Credit Suisse CEO Tidjane Thiam declared Bitcoin a “bubble” in 2017, it stirred debate among investors wondering what the return on investments for both Bitcoin and Credit Suisse since then would be.
Investing $1,000 in Bitcoin at the time of Thiam’s comments would now be worth 315.2%, or around $4,151.97. That’s an average annual return of 95%, which is considerably higher than the returns from other investments since then. Investing that same amount in Credit Suisse shares would yield 93.9% less than it was initially – an average annual loss of 17.6%. On the other hand, investing in an S&P 500 ETF has still proven to be a relatively safe bet, with returns increasing 155.2% since then – an average yearly gain of 29.1%.
It’s worth noting why these returns compared to each other are so different: while stock trading can often result in considerable gains over time, this requires more patience and timing as market conditions change quickly and drastically affect prices. On the other hand, Bitcoin and other cryptocurrencies have comparatively sky-high potential profit margins but also carry the risk of near-instant devaluation due to their volatility as well risk from hackers who target exchanges and digital wallets for large payouts in Bitcoins.
For those interested in investing part of their portfolios into stocks like those from Credit Suisse versus into Bitcoin, it is recommended to do thorough research and compare performance data across both markets before making a decision. It should also be noted that even with all its potential rewards due to its consistently growing user base, there may still be factors beyond investor control that could negatively impact one’s returns either on stocks or cryptocurrency investments alike — meaning that caution must always be exercised when deciding to invest one’s hard-earned money regardless of the asset type chosen.
In conclusion, investing in Bitcoin when Tidjane Thiam labelled it a “bubble” has paid off handsomely with returns that have overshadowed those of other investments. But no matter what asset is chosen, caution and research should always be applied before any large financial decision is made. The future of cryptocurrency remains uncertain but for now, it has proven to be a profitable investment.
