Bitcoin vs Other Assets – Which Is Better?

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Bitcoin vs stocks vs gold and real estate – which is better:

Bitcoin offers high volatility and is less regulated. Potential for large short-term gains.
Stocks provide steady growth and dividends. Lower volatility with consistent returns.
Gold is a safe haven. Protects against inflation and economic downturns.

This article takes a deep dive into Bitcoin, stocks, gold, and other assets, analyzing their returns, market capitalizations, and other factors that influence their investment potential.

Comparison of asset returns over the last 10 years

Comparison of asset returns over the last few ywars

Bitcoin: price growth and volatility analysis

Over the past decade, Bitcoin has shown impressive growth, delivering a 26,931% return from 2014 to 2024. In 2024 alone, its return was 120.8%, significantly outperforming traditional assets. However, its significant price swings are a key characteristic, with annualized volatility around 47%, requiring investors to be prepared for substantial price fluctuations.

Stocks: returns of the S&P 500 and other key indices

The S&P 500 Index, which tracks the performance of the 500 largest U.S. companies, has shown strong growth over the past decade. As of January 31, 2025, the 10-year return is around 202.8%, indicating a solid annual growth rate of about 12.8%. In 2024, the S&P 500 had a total return of 23.3%, continuing a two-year streak of over 20% returns.

These figures highlight the S&P 500's strong performance in recent years, making it an attractive choice for long-term investors looking for growth opportunities.

Gold: price trends and stability

Gold has traditionally been regarded as a safe-haven asset. Over the last decade, its value has increased by approximately 90%, reaching an all-time high of $2,427 per ounce in May 2024. In 2024 alone, gold delivered a 27.54% return, with an average annual growth rate of 9.8%, reflecting its stability during periods of economic uncertainty.

In contrast, U.S. stocks had an average 10-year return rate of 13.1% as of December 2024, while gold had a return rate of 8.33%.

Other Bitcoin alternatives

Real estate: property price growth in major cities

The real estate markets in Israel, Switzerland, and Germany have seen significant changes over the past decade. Here’s a breakdown:

Israel. Property prices in Israel jumped by about 345.7% from 2010 to 2020, marking the biggest rise among these countries. In early 2023, the average price of homes in Tel Aviv hit over 4.2 million Israeli shekels (around 1.13 million USD).
Switzerland. From 2010 to 2020, Swiss property prices grew by about 165.5%. In the second quarter of 2024, prices for high-end residential properties rose by 3% compared to the previous year.
Germany. German home prices climbed by roughly 162% from 2010 to 2020. However, in the second quarter of 2024, prices dropped by about 2.6% year-over-year, though there are signs of stability.

This shows that while Israel has experienced the largest price jumps, Switzerland's market has seen steady increases, and Germany's market has recently cooled off but is starting to stabilize. Keep in mind that local economic policies, interest rates, and other factors will continue to shape how these markets perform in the future.

Oil: price fluctuations and investment impact

Crude oil prices have been quite unpredictable over the past decade, with significant rises and falls influenced by global events, economic factors, and market trends. In 2024, the average price of Brent crude oil was about $80.53 per barrel, lower than the previous year's average of $100.53 per barrel.

Overall, the average price of Brent crude oil in 2024 was about $80.53 per barrel, lower than the previous year's average of $100.53 per barrel. These ups and downs show how volatile the oil market can be, affected by a mix of global events, economic factors, and market trends.

Pros and cons of different assets

Despite differences in market capitalization and liquidity, each asset has its strengths and weaknesses.

Bitcoin (BTC) pros and cons

Decentralization, independence from central banks and political decisions.
High mobility – you can trade 24/7, seven days a week.
Limited emission (21 million BTC) reduces the risk of inflationary depreciation.

High volatility, sharp fluctuations in the exchange rate in a short time.
Unlike stocks, does not generate passive income (dividends).
Regulatory risks may affect the availability of trading.

We’ve selected top brokers that provide secure, high-liquidity platforms for trading Bitcoin with competitive fees and fast execution.

Top brokers to trade Bitcoin with high liquidity and security
	Foundation year	Min. Deposit, $	Spot Taker fee, %	Spot Maker Fee, %	Withdrawal fee	Regulation	TU overall score	Open an account
Kraken	2011	10	0.4	0.25	0.0005 BTC		9.2	Go to broker Your capital is at risk.
OKX	2017	10	0.1	0.08	0.0004 BTC 2.6 USDT		8.9	Go to broker Your capital is at risk.
BTCC	2011	10	0.3	0.2	0.0004 BTC 0.005 ETH 6%. if there was no futures trading	FCIS, FinCEN, FINTRAC	7.84	Go to broker Your capital is at risk.
Coinbase	2012	10	0.5	0.5	Fixed fee - 25 USD PayPal - 1.5% USDC - 10 USD		7.68	Go to broker Your capital is at risk.
Nebeus	2014	5	Not available	Not available	Varies	Bank of Spain, FCA, CNV	7.6	Go to broker Your capital is at risk.

Gold pros and cons

Historically stable asset that retains value.
Low correlation with the stock market, useful for diversification.
Physical storage reduces the risk of cyberattacks and technical failures.

Does not generate passive income, unlike stocks and bonds.
Costs of storing physical gold (safes, insurance).
Limited growth opportunities compared to stocks or bitcoin.

Explore trusted platforms that make gold investing simple — offering stable pricing, high liquidity, and flexible investment options.

Trusted platforms to invest in gold and other metals with ease and stability
	Foundation year	Account min.	Deposit Fee	Withdrawal fee	Inactivity fee	Regulation	TU overall score	Open an account
eToro USA	2007	50				SEC, FINRA	8.8	Go to broker Your capital is at risk.
Plus500	2008	EUR500				CySEC, FCA, ASIC, FMA, FSCA, FSA Seychelles, EFSA, MAS, DFSA, SCB	8.55	Go to broker 80% of retail CFD accounts lose money.
eOption	2007		Not specified	Not specified	Not specified	FINRA, SIPC	8.2	Study review
Revolut	2015			No charge up to a limit	Not specified	FCA, SEC, FINRA	8.69	Study review
Fidelity	1946		$0	$0	$0	SEC, FINRA	8.53	Study review

Stock market (S&P 500, company stocks) pros and cons

Ability to receive dividends and participate in company profits.
Long-term growth: S&P 500 has grown by 202.8% over the past 10 years.
Regulated environment, investor protection in developed markets.

Susceptible to crises and economic downturns.
Highly dependent on the macroeconomic situation (Fed, inflation, rates).
Risk of devaluation of individual companies in case of poor management

Market capitalization alone does not determine an asset’s investment attractiveness. Liquidity, risk levels, and income potential are crucial factors for investors. Stocks and gold remain the most liquid assets, while Bitcoin offers high returns but comes with significant volatility. Investors should consider these factors when building their portfolios, aligning their choices with their investment goals and time horizon.

Our list features reliable brokers that offer access to global stock markets, dividend-paying shares, and user-friendly investing tools.

Best stock brokers
	Account min.	Interest rate	Basic stock/ETF fee	Min. stock/ETF fee	TU overall score	Open an account
eToro USA	50	3,75			8.8	Go to broker Your capital is at risk.
Plus500	EUR500		$0.006	Not specified	8.55	Go to broker 80% of retail CFD accounts lose money.
eOption		8.95%	$0	$0	8.2	Study review
Revolut		0%-4%	0.12%-0.25%	£1.00/€1.00	8.69	Study review
Fidelity		4.97%			8.53	Study review

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Comparison of market capitalization

Market сapitalization

Gold is the largest asset ($21.204T), significantly surpassing both stocks and cryptocurrencies.
Bitcoin ($1.662T) is much smaller than gold (over 12 times less) but comparable to leading tech companies.
Stocks of major tech giants range from $3.289T (Apple) to $1.866T (Google), showcasing strong market capitalization.

Price trends

Gold is rising (+1.39%) and shows a steady upward trend over the past 30 days.
Bitcoin is also increasing (+1.11%) but with more volatility in its price chart.
Stocks of most companies are declining (Microsoft -2.55%, NVIDIA -4.15%, Amazon -3.03%), reflecting current market pressures.

Volatility and investment appeal

Gold remains stable, with slow but consistent growth, reinforcing its status as a safe-haven asset.
Bitcoin has high growth potential but is significantly more volatile than gold and stocks.
Stocks are under pressure but remain a key long-term investment vehicle.

Factors influencing value

Factors influencing value of BTC, Stocks and Gold

Bitcoin: demand, regulation, and technology

Bitcoin’s value is driven by limited supply (21 million coins), investor demand, and adoption as a store of value. Government regulations can either boost confidence and participation or restrict demand. Technological advancements, such as network upgrades and integration with financial systems, further impact its market price.

Stocks: corporate performance and economic conditions

Stock prices depend on earnings, revenue growth, and industry positioning. Companies in high-barrier sectors (e.g., pharmaceuticals, tech) are more resilient to downturns, while competitive industries face greater volatility. Interest rates, inflation, and geopolitical trends also shape stock market performance, influencing investor sentiment and risk exposure.

Gold: inflation, geopolitics, and commodity demand

Gold acts as a hedge against inflation, but its price reacts to real interest rates rather than inflation alone. Geopolitical instability, trade wars, and central bank gold purchases increase its demand as a safe-haven asset. Additionally, global commodity trends, such as oil price fluctuations, can indirectly affect gold’s value.

Bitcoin’s volatility offers unique growth potential compared to stocks and gold

When comparing Bitcoin to stocks and gold, it's essential to understand that Bitcoin isn’t just a digital asset; it’s a financial revolution. Unlike stocks that represent ownership in companies and gold which is a centuries-old store of value, Bitcoin provides a hedge against both inflation and traditional financial systems. Bitcoin’s decentralized nature means it operates independently of government regulations, offering the potential for unparalleled growth in the future.

But what truly sets it apart is its volatility, which can be seen as an opportunity for those willing to manage risk. For a beginner, learning how to navigate this volatility with proper risk management strategies can unlock the potential for exponential gains — something neither stocks nor gold offer in such a short time span.

Conclusion

Investing in Bitcoin, stocks, and gold requires taking into account their characteristics and role in the portfolio. Bitcoin has high growth potential, but its volatility requires careful management. Stocks provide stable capital growth and the possibility of passive income through dividends. Gold protects against inflation and market shocks, but its long-term profitability is lower. The best option is to combine assets taking into account the investment horizon and risk level. Proper capital allocation reduces risks and makes the portfolio sustainable in different economic conditions.

FAQs

How to determine how much Bitcoin to include in a portfolio?

The optimal share depends on the level of risk. For a balanced portfolio, 5-10% is often used to benefit from growth without excessive volatility. Aggressive investors can increase the share, but this increases the risk of short-term drawdowns.

When does gold show the best returns?

Gold grows during low interest rates, economic instability, and a falling stock market. Examples are the 2008 crisis and the 2020 pandemic, when its price reached new highs. During periods of economic growth, gold usually shows weak dynamics.

Why are stocks historically considered the most reliable asset?

The stock market shows an average annual return of 7-10% over long periods of time, including crises. Companies develop, pay dividends, and the value of shares grows along with the economy. It is important to choose assets based on fundamental analysis, not short-term trends.

How to minimize risks when investing in Bitcoin?

Risks can be reduced by using cost averaging (buying in small parts) and a fixed percentage in the portfolio. It is also worth keeping some assets in stable instruments to compensate for possible falls in the crypto market.

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Team that worked on the article

Maxim Nechiporenko has been a contributor to Traders Union since 2023. He started his professional career in the media in 2006.

Learn about our editorial policies

Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets.

Upward Trend

Uptrend is a market condition in which prices are generally rising. Uptrends can be identified by using moving averages, trendlines, and support and resistance levels.

Risk Management

Risk management is a risk management model that involves controlling potential losses while maximizing profits. The main risk management tools are stop loss, take profit, calculation of position volume taking into account leverage and pip value.

Extra

Xetra is a German Stock Exchange trading system that the Frankfurt Stock Exchange operates. Deutsche Börse is the parent company of the Frankfurt Stock Exchange.

CFD

CFD is a contract between an investor/trader and seller that demonstrates that the trader will need to pay the price difference between the current value of the asset and its value at the time of contract to the seller.

Volatility

Volatility refers to the degree of variation or fluctuation in the price or value of a financial asset, such as stocks, bonds, or cryptocurrencies, over a period of time. Higher volatility indicates that an asset's price is experiencing more significant and rapid price swings, while lower volatility suggests relatively stable and gradual price movements.

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