Nvidia Stock Breaks $1,000! Expert: Bitcoin is My Choice for the Next Decade
Bitcoin has been in existence for 15 years, with its price skyrocketing from an initial trading price of $0.0008 to a peak of $74,000 this year, a growth of almost 92.5 million times. Throughout this period, it has experienced both rapid surges and sharp declines, creating many legendary stories in the cryptocurrency world.
However, in the past decade, one of the few assets that has outperformed Bitcoin in terms of price growth is the stock of American tech giant Nvidia.
With the continuous rise in demand for graphic processing units (GPUs) and the new generation of AI chips, Nvidia, known as the “wind vane” of the AI industry, saw its stock price break the $1,000 mark last week. According to The Kobeissi Letter, a trading resource analysis platform, if $10,000 was invested in Nvidia stocks in 1999, it would now be worth approximately $25.3 million.
However, investment strategist Lyn Alden recently stated on the social platform X that although Nvidia is one of the few assets that has performed better than Bitcoin in the past 10 years, she would choose Bitcoin for the next decade.
This tweet quickly sparked discussions on social media platforms.
Cory Klippsten, CEO of investment platform Swan Bitcoin, also expressed that the chances of Nvidia surpassing Bitcoin in the next 10 years are almost zero.
Can Nvidia continue to outperform Bitcoin in the next decade?
On January 9, 2009 (the birthdate of Bitcoin), Nvidia’s stock price was $1.82. According to Statmuse data, from May 23, 2014, to May 23, 2024, over a period of 10 years, Nvidia’s stock price has increased from $4.4 to $1,064, a return rate of 23,577%. On the other hand, Bitcoin’s price has increased from $240 to $73,079 over the past decade, resulting in a return rate of 12,821%.
Since the approval of the Bitcoin ETF in spot markets on January 10 this year, the price of Bitcoin has slightly outperformed Nvidia in the past three months. Data shows that Bitcoin has a return rate of 31.7%, while Nvidia has a return rate of 30.2%.
However, cryptocurrency veteran Daniel Sempere Pico commented on X saying that in 2014, both the adoption rate of Bitcoin and artificial intelligence were still very low, making it uncertain which investment, Nvidia or Bitcoin, carries greater risk. Regardless, “it is uncertain whether anyone in 2014 could predict the development of AI, but there were indeed people who saw the potential of Bitcoin at that time.”
Sina, co-founder of Bitcoin investment company 21st.capital, believes that as more people start using financial assets, financial assets usually generate a more widespread network effect than artificial intelligence.
Sina emphasized that there is no network effect in the field of artificial intelligence, but there are multiple layers of network effects in currencies. In economics, when the utility obtained by consumers using a particular product is related to the “number of other users using the same product or service,” it exhibits network externality.
For example, the more people use Facebook as a daily social media platform, the higher the value users obtain when scrolling through Facebook. The same applies to currencies, as the value of a currency increases when more people start using and holding it.
However, Bitcoin and Nvidia represent two different fields and trends, so it seems unfair to directly compare the two. No one can predict whether Bitcoin or Nvidia will have stronger growth in the AI field in the next decade, but the future performance of both seems highly anticipated.
Reference:
Cointelegraph