Recently, the tech giant Nvidia achieved a historical high. Looking back at the past decade, Nvidia has been one of the few assets that outperformed Bitcoin. So, how would you choose in the next decade?
(Appendix:
Apple is rumored to collaborate with TSMC to develop “AI chips” in an attempt to change Nvidia’s dominance in computing power.
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(Background:
Bitcoin has lower volatility than Tesla and Nvidia! Fidelity analyst: Low volatility is a precursor to price surges.
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The US tech giant Nvidia announced its first-quarter financial report for 2024 on the morning of the 23rd of this week. The data showed that its performance exceeded market expectations, and it quickly rose in after-hours trading in the US stock market, breaking the $1,000 mark for the first time. It is worth noting that there is a school of thought in the cryptocurrency industry on the X platform that “the possibility of Nvidia’s return exceeding that of Bitcoin in the next 10 years is almost zero.”
Further reading:
Nvidia’s financial report exceeds expectations: Revenue increased by 262%, stock price exceeds 1,000 yuan, 4 highlights at a glance! AI concept coins rise together
Nvidia has outperformed BTC in the past decade
Recently, investment strategist Lyn Alden pointed out on the social platform X that Nvidia is “one of the few assets that has outperformed Bitcoin in the past 10 years.” In the past decade, Nvidia’s stock price has significantly outperformed Bitcoin due to its leading position in graphics processing units (GPUs) and artificial intelligence (AI) fields. However, she expressed her position in the tweet, stating that in the next ten years, she would personally choose Bitcoin over Nvidia. This tweet quickly sparked community discussions.
According to data from Statmuse, from May 23, 2014, to May 23, 2024, the return rate of the tech company Nvidia reached 21,558%. In comparison, the return rate of Bitcoin (BTC) during the same period was 13,048%. Nvidia’s chips used for training and deploying AI models have shown astonishing growth in the past two years.
In the past three months since January 10, when the Bitcoin spot ETF was approved, Bitcoin’s increase has slightly surpassed Nvidia. The data shows that the return rate of Bitcoin is 31.7%, while Nvidia’s return rate is 30.2%.
Daniel Sempere Pico, an OG in Bitcoin, also commented below, saying, “I don’t know if anyone in 2014 could predict the development of artificial intelligence, but some people have already seen the potential of Bitcoin.” He added:
In addition, one of the co-founders of 21st.capital believes that as more and more people start using financial assets, financial assets usually generate more extensive network effects than artificial intelligence. He responded, “Artificial intelligence does not have network effects. Money has multiple layers of network effects.”
For the two investment targets, Nvidia and Bitcoin, it may not be appropriate to simply compare their return rates. Although both have shown strong growth, they represent different trends and application areas.
Arthur Hayes: Bitcoin could reach $1 million
On the 21st of this month, Arthur Hayes, the founder of the cryptocurrency derivatives trading platform BitMEX, also made predictions about the future price of Bitcoin. He believes that the depreciation of the US dollar represents a sharp increase in global US dollar liquidity, which will benefit the cryptocurrency market. If the US and Japan central banks really adopt a blunt swap policy, it will trigger a new round of price surges in the cryptocurrency market.
Arthur Hayes suggested that cryptocurrency traders closely monitor the changes in the future exchange rate between the US dollar and the Japanese yen, and appropriately increase their cryptocurrency allocations. He emphasized that when the market discovers that the US and Japan are starting a large-scale currency swap, and the scale of the swap is continuously expanding, it is very likely that it represents the arrival of a bull market in the cryptocurrency market, and Bitcoin will reach $1 million.
Further reading:
Arthur Hayes: The printing of money will accelerate, and I am increasing my chips… The crazy bull market is not over yet
Arthur Hayes: The golden opportunity to increase holdings of virtual currencies has arrived! Three reasons to be optimistic about a new round of BTC market trends
Arthur Hayes warns: Bitcoin will experience a “major crash” before and after halving. He will not make any trades before May. What does he see?
Related Reports
Arthur Hayes’ latest article: Printing money will accelerate, and I am increasing my chips… The crazy bull market is not over yet
Arthur Hayes: The golden opportunity to increase holdings of virtual currencies has arrived! Three reasons to be optimistic about a new round of BTC market trends
Arthur Hayes warns: Bitcoin will experience a “major crash” before and after halving. He will not make any trades before May. What does he see?