Nvidia Stock Breaks a Thousand! Expert: Bitcoin is My Choice for the Next Decade
Bitcoin has been around for 15 years now, with its price skyrocketing from an initial trading price of $0.0008 per coin to a peak of $74,000 this year, a growth of almost 92.5 million times. Throughout this period, it has experienced extreme price fluctuations, creating numerous legendary stories in the crypto world.
However, in the past decade, one asset that has managed to outperform Bitcoin’s price surge is the stock of the US tech giant Nvidia.
With the continuous rise in demand for graphics processing units (GPUs) and next-generation AI chips, Nvidia, hailed as the AI industry’s barometer, saw its stock price surpass $1,000 last week. The Kobeissi Letter, a trading resource analysis platform, pointed out in a tweet on May 24 that if $10,000 had been invested in Nvidia stocks in 1999, it would be worth around $25.3 million today.
However, investment strategist Lyn Alden recently stated on the social platform X that while Nvidia has been one of the few assets that outperformed Bitcoin in the past decade, she would choose Bitcoin for the next ten years.
This tweet quickly sparked discussions on social media.
Cory Klippsten, CEO of investment platform Swan Bitcoin, also stated that the likelihood of Nvidia surpassing Bitcoin in the next ten years is almost zero.
Can Nvidia continue to outperform Bitcoin in the next decade?
On January 9, 2009 (Bitcoin’s birthday), Nvidia’s stock price was $1.82. According to Statmuse data, from May 23, 2014, to May 23, 2024, after a span of ten years, Nvidia’s stock price has risen from $4.4 to $1,064, resulting in a return rate of 23,577%. Meanwhile, Bitcoin’s price has gone from $240 to $73,079 in the past decade, with a return rate of 12,821%.
Since the approval of the Bitcoin spot ETF on January 10 this year, Bitcoin’s price has slightly outperformed Nvidia in the past three months. Data shows that Bitcoin has had a return rate of 31.7%, while Nvidia’s return rate stands at 30.2%.
However, crypto veteran Daniel Sempere Pico commented on X, stating that in 2014, the adoption rates of both Bitcoin and AI were still low, making it uncertain which investment carries a greater risk, Nvidia or Bitcoin. Nevertheless, “it is uncertain whether someone could predict the development of AI in 2014, but there were indeed people who saw the potential of Bitcoin back then.”
Sina, co-founder of Bitcoin investment company 21st.capital, believes that as more people begin to use financial assets, these assets usually generate a wider ripple effect than artificial intelligence.
Sina emphasizes that there is no network effect in the field of artificial intelligence, whereas currencies have multiple layers of network effects. In economics, when consumers derive utility from a product or service based on the number of other users, it exhibits network externality.
For example, the more people use Facebook as a daily social networking platform, the higher the utility value for users when browsing through it. Similarly, currencies also exhibit this network effect, where the more people start using and holding a certain currency, the higher its utility value becomes.
However, Bitcoin and Nvidia represent two different fields and trends, so comparing them directly may not be entirely fair. No one can predict whether Bitcoin or Nvidia will have stronger growth in the AI field in the next decade, but both of their future performances seem highly anticipated.
References:
Cointelegraph
