$1K in Bitcoin vs. S&P 500 vs. Gold: Which Investment 10 Years Ago Won?
What difference can 10 years make? If you invested $1,000 a decade ago, the answer depends on where you put your money. While bitcoin, the S&P 500, and gold all rewarded long-term investors, returns and risk looked different.
Financial experts weighed in on how each investment performed and which one came out ahead.
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If You Invested $1K in Bitcoin 10 Years Ago
If you invested $1,000 in bitcoin in June 2016 and didn’t touch it for 10 years, you’d have about $89,000 right now, according to the bitcoin ROI calculator.
Bitcoin launched in January 2009, and by the middle of June in 2016, the Bitcoin Price History Chart shows that it was worth around $660.
“In 2016, bitcoin was still in its infancy as the crypto craze hadn’t reached the retail public yet,” said Jared Berkson, finance leader at The Alloy Market. “As more and more people became aware of bitcoin, money poured in from retail investors.”
According to Berkson, Robinhood rolled out cryptocurrency trading in February 2018, which made it more approachable for the average investor. At its height last year, bitcoin was worth around $120,000. As of late June, it was worth almost $59,000 – roughly 50% down from its all-time high.
If You Invested $1K in the S&P 500 10 Years Ago
If you invested $1,000 in the stock market in June 2016, Clark.com’s S&P 500 Return and Investment Calculator estimated that you would have about $4,300 in 2026. That’s a total return of nearly 330%. There was an annual return of 31% in 2019, the best year, but 2022 dipped by -18%.
“The S&P performs well over time when averaging out annual gains/losses,” Berkson said.
The S&P 500 also outperformed its historical average return, which is about 10% annually. Last year, the total return was almost 18%, Slickcharts reported.
If You Invested $1K in Gold 10 Years Ago
A $1,000 investment in gold in June 2016 would mean you’d have about $3,810 worth of gold in 2026, according to Clark.com’s Gold Investment Returns Calculator.
“Gold has maintained its position as a trusted store of value for centuries because it fulfills a fundamentally different purpose than most financial assets,” said Tom Scott, subject matter expert at American Standard Gold.
It’s also one of the few assets that’s not dependent on corporate earnings, management decisions, debt markets or government monetary policy, he added.
“Investors often compare gold to stocks or cryptocurrencies as though they serve the same purpose. They don't,” he said. “Gold's primary role is preserving purchasing power and diversifying risk."
Which Investment Came Out on Top?
Bitcoin was the clear winner. Here's a return breakdown over the past decade:
Bitcoin: 8,848%
S&P 500: 330%
Gold: 281%
“Bitcoin returns are so much higher that you can’t even see gold or the S&P 500,” said Brett Eversole, lead editor at Stansberry Research, a MarketWise brand.
But he also pointed out that this isn’t a story about gold or stocks performing poorly. It was a great decade for all three, but bitcoin outperformed the S&P 500 and gold by a long shot.
Would Financial Advisors Make the Same Bet Today?
According to Eversole, bitcoin was a brand-new asset, which could have been a reason for its popularity.
“It has now been adopted in a major way. So we shouldn’t expect the size of the early gains to continue,” he said.
For some context, Eversole shared the same chart, but only over the past five years:
Bitcoin: 88% (14% per year)
S&P 500: 87% (13% per year)
Gold: 128% (18% per year)
You don’t want to chase performance, and putting all your money into one asset is generally seen as a risky strategy. “Diversification is the best medicine,” Berkson said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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