2024 has certainly been an extraordinary year for Bitcoin (BTC), with the digital asset recording triple-digit gains and even breaching the long-awaited milestone price of $100,000 in early December. But while the cryptocurrency’s performance has been nothing short of remarkable, it appears that another asset has outshone BTC in terms of returns.
According to research conducted by Finbold, semiconductor giant Nvidia (NASDAQ: NVDA) delivered even higher returns than Bitcoin in 2024. If an investor had placed their money in Bitcoin at the start of the year, they would have seen a return of 139.72% by Thursday, December 12. In contrast, an investment in Nvidia stock would have appreciated by a staggering 188.47% over the same period. This means that NVDA’s gains were 1.35 times higher than BTC’s, offering investors a 35.7% greater return on investment (ROI).
When looking at the market capitalizations of the two assets, the difference becomes even starker. Bitcoin’s market cap started at around $830 billion at the beginning of the year and has grown to nearly $2 trillion. This represents a sizeable increase of $1.17 trillion in 2024 alone.
However, Nvidia’s stock managed to outperform this already impressive rise. Starting the year with a market cap of $1.22 trillion, Nvidia’s valuation surged to $3.41 trillion by December 12, marking an increase of $2.19 trillion.
This isn’t the first time Nvidia has outperformed Bitcoin. Since 2022, NVDA shares have consistently delivered higher returns, thanks in large part to the ongoing boom in artificial intelligence (AI). For instance, an investment in Nvidia in January 2023 would have grown 835%, while a Bitcoin investment made at the same time would have risen 494%.
The trend is the same for investments made at the start of 2020. NVDA stock has surged 2,255.9% in this time frame, while BTC has grown 1,273.2%. It’s important to note, however, that Bitcoin does have its moments of triumph. An investment made in Bitcoin at the start of 2015 would have outperformed an Nvidia stock trade, with the cryptocurrency rocketing 36,000% since then, compared to the chipmaker’s 27,000%.
Despite the common expectation that dividends might increase NVDA shares’ advantage as an investment, given that Bitcoin doesn’t offer such benefits, the semiconductor giant’s yield is so minuscule at 0.029% that it hardly alters the total return on investment. A $1,000 investment made at the start of 2024 would have yielded less than $1 in dividend payouts.
In conclusion, 2024 has been a monumental year for both Bitcoin and Nvidia, with both assets delivering exceptional returns. However, it appears that in this year at least, the semiconductor giant takes the crown.
