BITCOIN vs AMAZON 10yr Investment 2015-2024
If you invested $10,000 into #Bitcoin and $10,000 into #Amazon stock on Jan 1st every year. What would the ROI be on each asset over the last 10 years?
A Comparative Analysis of Investment in USD Dollars, Bitcoin, and Amazon Stock
This paper examines the performance of two hypothetical investors who started with an initial investment of $10,000 on January 1st, 2015. Investor 1 chooses to invest in Bitcoin, while Investor 2 opts for Amazon stock. Both investors contribute an additional $10,000 to their respective investments on January 1st of each subsequent year. The paper analyzes the growth of their investments over time and determines which investor has accumulated more wealth as of today.
Introduction:
In recent years, cryptocurrencies like Bitcoin have gained significant attention as an alternative investment option. This paper aims to compare the performance of Bitcoin and Amazon stock as investment vehicles by analyzing the hypothetical scenarios of two investors.
Methodology:
The study uses historical data to track the growth of Bitcoin and Amazon stock from January 1st, 2015, to the present day. The performance of the two investments is compared based on the initial investment of $10,000 and subsequent annual contributions of $10,000 on Jan 1st of each year.
Results:
Investor 1: Bitcoin Investment
On January 1st, 2015, Investor 1 purchased Bitcoin at a price of approximately $314.25 per coin (CoinMarketCap, 2024). As of today, the price of Bitcoin stands at $67,768.00 per coin (CoinMarketCap, 2024). By investing $10,000 initially and adding $10,000 each year, Investor 1 has accumulated a total of 70.77 BTC. At the current price, the value of their Bitcoin holdings is $4,795,942.
Investor 2: Amazon Stock Investment
On January 1st, 2015, Investor 2 purchased Amazon stock for $314.25 per share (Yahoo Finance, 2024). As of today, the price of Amazon stock stands at $100.20 per share (Yahoo Finance, 2024). By investing $10,000 initially and adding $10,000 each year, Investor 2 has accumulated a total of 156.72 Amazon shares. But in June of 2023, amazon did a 20-1 stock split. You would have owned 96.74 shares, times that by 20 and you get 1,934 shares. In total, you would own 2099.77 shares of AMZ At the current price, the value of their Amazon stock holdings is $366,262. The total amount invested was $100,000, your ROI profit would be 366%
Conclusion:
Based on the analysis, Investor 1, who chose to invest in Bitcoin, has accumulated significantly more wealth than Investor 2, who invested in Amazon stock. As of today, Investor 1's Bitcoin holdings are worth $4,795,941, while Investor 2's Amazon stock holdings are valued at $336,262. Investor 2 investment would be up to $266,262 at the time of writing. Investor 1 would be up $4,695,941. This study demonstrates that Bitcoin has outperformed Amazon stock as an investment vehicle by 1,663% from January 1st, 2015, to the present day.
