Tesla shares and the bitcoin price have both been on a tear for the last several months. Tesla stock continued to climb after Wednesday’s earnings report, and the bitcoin price has also continued its ascent.
So with such astronomical gains, which has been the better investment? If you’re looking at the short term, Tesla shares have outperformed the bitcoin price, but in the long term, bitcoin is still a better investment.
Tesla Shares Outperformed The Bitcoin Price In 2020
Cointelegraph pointed out Tesla shares’ outperformance of the bitcoin price so far this year, citing data from CBOE, which was spotted by QuantumEconomics.io founder Mati Greenspan:
Baupost’s Seth Klarman: the Fed has broken the stock market [Q4 Letter]
Baupost founder Seth Klarman told investors that the large amounts of stimulus that have been poured into the world's economies are masking the severity of the problems caused by COVID-19. Q4 2020 hedge fund letters, conferences and more In a letter seen by the
— Mati Greenspan [tweets are not trading advice] (@MatiGreenspan) January 29, 2020
CBOE data reveals that Tesla shares were up 38% before the surge that followed the company’s Wednesday earnings release, compared to the 30% gain in the bitcoin price. The bitcoin price also gained on Thursday, climbing up past $9,500.
Bitcoin Beats Tesla Stock In The Long Term
Cointelegraph pointed out in December that the bitcoin price was up by about 9 million percent over the last 10 years, which makes it the far better investment over the last decade. In fact, bitcoin has been a profitable trade for 89% of its lifetime. Since 2009, the cryptocurrency has only been unprofitable to buy on 434 days, according to 99 Bitcoins.
No other investment comes anywhere near bitcoin’s returns for the last 10 years. Tesla stock has certainly seen its ups and downs over the last decade between the $20 it was at 10 years ago and the nearly $650 it stands at now.
Another area of comparison between the two assets is their market capitalization. Bitcoin’s market cap stands at $170 billion, while Tesla’s stands a bit short of $120 billion after Thursday’s gains.