Over the past decade, Nvidia, a technology company known for its high-performance graphics processing units (GPUs), has outperformed Bitcoin in terms of investment returns. However, cryptocurrency executives believe this trend is unlikely to continue over the next ten years.
Cory Klippsten, CEO of Swan Bitcoin, expressed his skepticism on social media, stating, “There’s near zero chance of Nvidia outperforming Bitcoin over the next 10 years.” Investment strategist Lyn Alden echoed this sentiment, favoring Bitcoin over Nvidia for future returns. Alden noted that while Nvidia is one of the few assets that has outpaced Bitcoin over the last decade, this scenario is unlikely to repeat.
From May 23, 2014, to May 23, 2024, Nvidia’s stock saw an astonishing increase of 21,558%, largely driven by its pivotal role in developing and deploying artificial intelligence (AI) technologies. In comparison, Bitcoin’s value rose by 13,048% during the same period, according to data from Statmuse.
Interestingly, in the past three months, Bitcoin has slightly outperformed Nvidia. Since the approval of spot Bitcoin exchange-traded funds (ETFs) on January 10, Bitcoin has gained 31.7%, while Nvidia’s returns stood at 30.2%.
The Kobeissi Letter, a trading resource, highlighted the impressive long-term performance of Nvidia’s stock. They pointed out that a $10,000 investment in Nvidia in 1999 would be worth $25.3 million today.
Daniel Sempere Pico reflected on the perceived risks of investing in Nvidia back in 2014, when both Bitcoin and AI were not as widely adopted as they are now. He suggested that predicting the AI boom was challenging, whereas Bitcoin’s potential was already recognized by some.
Pico pondered, “If we were to go back to 2014, I wonder which one we’d think is more risky and less obvious to achieve such incredible returns.”
On the other hand, a commentator known as “Sina,” co-founder of 21st.capital, argued that financial assets like Bitcoin generally have a more significant and broader impact compared to AI technologies. As more people start using financial assets, their value and influence tend to increase, creating a domino effect that can drive substantial returns.
In summary, while Nvidia’s past decade of exceptional performance is noteworthy, crypto executives and investment strategists suggest that Bitcoin may offer better prospects for the next ten years. They believe that the unique characteristics and increasing adoption of Bitcoin will likely lead to higher returns compared to Nvidia’s stock, despite the latter’s significant achievements in the AI sector.