Recently, the technology giant Nvidia has reached a new all-time 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 dominant position in computing power.
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(Background:
Bitcoin has lower volatility than Tesla and Nvidia! Fidelity analyst: Low volatility is a sign of price surges.
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On the morning of the 23rd of this week, the US technology giant Nvidia announced its financial report for the first quarter of 2024. The data showed that its performance exceeded market expectations, and its stock quickly rose above $1,000 in after-hours trading for the first time. It is worth noting that in the field of cryptocurrency on the X platform, some analysts have pointed out that the possibility of Nvidia’s return rate surpassing 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 in one look! Rise of AI concept coins
Nvidia has outperformed BTC in the past decade
Recently, investment strategist Lyn Alden stated on the social platform X that Nvidia is “one of the few assets that 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 personal preference for Bitcoin over Nvidia in the next ten years, which quickly sparked discussions in the community.
According to the data from Statmuse, from May 23, 2014 to May 23, 2024, the return rate of the technology 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 the approval of the Bitcoin spot ETF on January 10th, the increase in Bitcoin 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, commented, “I don’t know if anyone in 2014 could predict the development of artificial intelligence, but some people already saw 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 multi-layered network effects.”
For the investment targets of 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 exchange 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 Japanese central banks really adopt a simple and crude swap policy, it will trigger a new round of price surges in the cryptocurrency market.
Arthur Hayes suggested that cryptocurrency traders closely monitor the future exchange rate between the US dollar and the Japanese yen and appropriately increase their cryptocurrency allocation. 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 continues to expand, it is likely to indicate that the bull market for cryptocurrencies is coming, and Bitcoin could reach $1 million.
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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 come! Three reasons to be optimistic about the new trend of BTC.
Arthur Hayes warns: Bitcoin will experience a “big crash before and after halving.” He won’t make any trades before May. What did he see?