Bitcoin vs the World
Loved, Hated, Ignored—But Never Matched
Bitcoin…
Where do I even start?
Some people love it, some people (Warren Buffett) don’t:
Well, lets talk about first the performance!
Over the past decade, Bitcoin has transformed from a fringe digital curiosity into one of the most remarkable investment stories of the 21st century. Dismissed as a bubble in 2017, dead in 2018, and laughed off by institutions for most of its life, Bitcoin has quietly — and at times explosively — become the best-performing major asset in recent history.
Bitcoin hasn’t just outperformed — it has left nearly every other asset in the dust. Even when compared to the best stocks in the world, Bitcoin remains in a league of its own.
What Drove the Outperformance?
Monetary Policy Tailwinds
The 2010s and early 2020s were shaped by low interest rates and quantitative easing. As central banks expanded their balance sheets, Bitcoin offered something radically different: a fixed supply asset immune to monetary inflation. In a world of monetary dilution, Bitcoin became a magnet for capital seeking scarcity.
“Bitcoin is the only asset that has a supply schedule completely unaffected by demand.” – Saifedean Ammous
2. Digital Gold
Gold had long served as a hedge against inflation and systemic risk. But Bitcoin, with its portability, transparency, and divisibility, began to be seen as a superior version for the digital age. Institutional voices—from BlackRock’s Larry Fink to legendary hedge fund managers like Paul Tudor Jones—lent credibility to the “digital gold” thesis.
Institutional Adoption & Infrastructure
The rise of Bitcoin ETFs, custody solutions (Fidelity, Coinbase), and clearer regulation in key markets like the US and EU transformed Bitcoin from a retail-only speculative asset into an investable product. The January 2024 approval of US spot Bitcoin ETFs marked a watershed moment, unlocking a flood of new capital.
ETF AUM (2024–2025):
BlackRock iShares BTC ETF: $25bn
Fidelity Wise Origin ETF: $18bn
Grayscale (converted): $23bn
This legitimisation widened the pool of capital—and more importantly, anchored long-term demand.
Halving Cycles & Scarcity Economics
Every four years, Bitcoin undergoes a halving, reducing the new supply of coins by 50%. This built-in mechanism has created a kind of “digital rhythm” to its bull markets. Each halving historically led to new all-time highs within 12–18 months.
A Global, Borderless, 24/7 Asset
Bitcoin is unlike any other asset in the modern portfolio. It trades 24/7, has no country, no CEO, and no physical form. It’s owned by individuals in Nigeria, Argentina, Germany, and Japan—each with their own reasons for valuing a decentralised currency.
This global ownership base means Bitcoin isn’t just a bet on US tech or Chinese demand—it’s a bet on the future of money, everywhere.
Volatility
For all its gains, Bitcoin has come with a heavy cost: volatility. Investors drawn in by its staggering returns often underestimate the emotional challenge of holding through multi-year drawdowns.
Unlike traditional assets that benefit from earnings, dividends, or fundamentals, Bitcoin is a pure supply-and-demand asset—prone to sharp swings when sentiment turns.
Let’s look at the major drawdowns:
Bitcoin doesn’t just fall—it crashes. But in each case, it’s eventually recovered and pushed to new highs. Investors who held through these bear markets were rewarded handsomely—if they had the conviction to endure.
Has Anything Actually Beaten Bitcoin?
The answer, simply put, is no.
While a handful of exceptional tech stocks have delivered mind-blowing returns, Bitcoin still stands as the benchmark for outperformance.
Even Nvidia—perhaps the greatest stock story of the decade—still trails Bitcoin by a wide margin. And that’s without the headaches of earnings, regulation, or supply chains.
What’s even more impressive is that Bitcoin achieved this without being a company. It has no revenues, no management team, no geographic base. It’s software, code, and belief.
What Could Go Wrong?
Regulatory
The biggest near-term threat isn’t technological—it's political. While regulatory clarity has improved in regions like the US, UK, and EU, there’s still a risk of overreach, particularly in:
Taxation: Heavy capital gains taxes or transaction tracking could disincentivise use.
Custody laws: Institutional adoption could be stifled if strict custody rules are imposed on funds.
Outright bans: While unlikely in developed markets, developing nations under FX stress may still target Bitcoin as a capital flight vehicle.
Energy Backlash and ESG
Institutional investors may face pressure not to hold it, regardless of performance.
Governments may limit mining licenses due to energy concerns.
Public opposition may grow, especially if narratives of waste overshadow security.
Technological Disruption
Deliver faster, cheaper, more private transactions.
Integrate more easily with national financial systems (e.g., Central Bank Digital Currencies).
Offer stronger programmability without sacrificing decentralisation (e.g., alternative Layer 1s).
A Decade of Outperformance
Bitcoin has spent over a decade proving its doubters wrong.
It has survived multiple 80% drawdowns, endured government bans, regulatory ambiguity, energy debates, exchange scandals, and countless obituaries in the financial press. And yet — it is still here. Stronger, more widely held, more integrated into the global financial system, and increasingly treated not as an experiment, but as a distinct new asset class.
What we’re seeing now is Bitcoin’s slow graduation into a macro asset — a kind of digital monetary primitive. It may never replace currencies, but it may well complement portfolios the way gold once did in the pre-digital era.
And unlike earlier cycles driven by retail euphoria and leverage, this time the capital base is institutional, the rails are regulated, and the product is investable through ETFs, ISAs, SIPPs, and pensions.
For long-term investors, the decision is less about predicting price and more about portfolio construction. Few assets offer asymmetric upside, no correlation to traditional earnings cycles, and 24/7 global liquidity. Fewer still have done so for more than a decade — and attracted sovereign, institutional, and retail interest along the way.
“Bitcoin reminds me of gold when I first got into the business in 1976.”
- Paul Tudor Jones
“Bitcoin is an international asset. It’s not based on any one currency, and so it can represent an asset that people can play as an alternative.”
-Larry Fink
“Bitcoin is an insurance policy against an irresponsible central bank.”
-Nassim Nicholas Taleb
Thanks for reading!
Ollz
The information provided in this article is for informational purposes only and represents my personal opinions and analysis. It should not be construed as financial advice or a recommendation to buy or sell any securities. Investing in the stock market carries risks, and past performance is not necessarily indicative of future results. Readers are strongly encouraged to carry out their own research and seek advice from a qualified financial advisor before making any investment decisions. I do not accept any responsibility for any financial losses or consequences that may arise from reliance on the information presented in this article.