Bitcoin historically crushed silver but a huge flip since 2021 has changed everything for investors
While Bitcoin outperformed silver from 2018, silver has significantly beaten Bitcoin since the start of 2021 due to changing macroeconomic conditions.Summary
Historically, Bitcoin has vastly outperformed silver since May 2018, delivering a 1,036.5% return compared to silver's 554.9% over that period, cementing its status as the decade's standout asset during a time of high liquidity.
However, the narrative flipped starting January 4, 2021. In the post-2020 environment characterized by inflation and rising interest rates, silver returned 322.3%, significantly beating Bitcoin's 129.5% return. This shift is attributed to markets prioritizing inflation hedges and monetary credibility (benefiting gold and silver) over pure growth and duration.
The article concludes that neither asset is universally "the best"; the 2018-to-now performance favors the adoption curve winner (Bitcoin), while the 2021-to-now performance favors inflation-sensitive assets (silver/gold). Investors must align their holdings with the current macroeconomic regime and be prepared for the volatility associated with their chosen asset.
(Source：CryptoSlate)