If you own any stocks or mutual funds, you might wonder how Bitcoin compares as an investment option. Legally, under US law, Bitcoin has been classified as a commodity under the Commodity Exchange Act (CEA). Gold, silver, and copper are examples of commodities. Many professional investors recommend having some percent of your investment portfolio in gold. So, how about Bitcoin?
Traditional investment advice recommends a diversified portfolio of broad index funds like Vanguard’s Total Stock Market index (VTSAX). Newer investors have seen the phenomenal returns of tech stocks like Amazon (AMZN) and Apple (AAPL) in the 2000’s. How does Bitcoin compare to these two tech stocks and the famous index fund? Let’s see how $10,000 invested in each of these has performed since the Summers of 2016, 2019, and 2020.