Crypto executives have dismissed the idea that technology company Nvidia will continue to outperform Bitcoin in the next decade. Swan Bitcoin CEO Cory Klippsten stated that there is a “near zero chance” of Nvidia surpassing Bitcoin’s performance in the next 10 years. Investment strategist Lyn Alden also shared a similar sentiment, expressing her preference for Bitcoin over Nvidia in the coming decade. While Nvidia has outperformed Bitcoin over the past 10 years, Klippsten and Alden believe this trend is unlikely to continue.
Between May 23, 2014, and May 23, 2024, Nvidia has seen a return of 21,558%, while Bitcoin has returned 13,048%, according to Statmuse data. In the past three months since the approval of spot Bitcoin exchange-traded funds (ETFs), Bitcoin has slightly outperformed Nvidia, with returns of 31.7% and 30.2% respectively.
The Kobeissi Letter, a trading resource, highlighted that a $10,000 investment in Nvidia stock in 1999 would now be worth $25.3 million. This serves as a testament to Nvidia’s impressive growth. However, Daniel Sempere Pico raised the question of whether Nvidia would have been considered a riskier investment back in 2014, when Bitcoin and AI were not as widely adopted.
Sina, the co-founder of 21st.capital, argued that financial assets generally have a broader impact than AI due to network effects. He stated that while AI lacks network effects, money has multiple layers of network effects, making it a more powerful asset.
While there are optimistic predictions for Bitcoin’s performance in the next two years, there are also warnings of a significant correction. Former physics professor Giovanni Santostasi, using his “Power Law” model, predicts that Bitcoin could reach a peak of $210,000 in January 2026, followed by a subsequent drop to as low as $60,000.
In other news, there is a documentary available on Amazon Prime called “The $2,500 doco about FTX collapse,” which explores the collapse of FTX with the help of the filmmaker’s mother.