- Bitcoin had a great 2021.
- So did a lot of stocks.
When it comes to investing, it’s hard to quibble with an annual return of 60%.
And yet holders earned lower yields in 2021 than one of the Web2 companies that crypto is trying to overtake: Alphabet (GOOGL).
Bitcoin had a lackluster December, limping into the new year with 60% returns for 2021—its worst performance since 2018, when it lost roughly three-quarters of its value. (Investors can only hope for a down year like that again.)
Obviously, double-digit returns are nothing to sniff at, especially given Bitcoin’s market dominance. BTC has a $880 billion market capitalization, ranking eighth on CoinMarketCap’s list of assets, in between Meta (FB) and Nvidia (NVDA) shares. As assets get larger, their upward mobility typically decreases; there’s more room to grow when you’re less established, which is why newer coins and tokens such as Axie, , and Shiba Inu were able to post astronomical returns.
But Alphabet, which has a market cap above Bitcoin’s, nonetheless managed to beat it. Google’s parent company watched its stock price rise 68% in 2020, per data from Google Finance, thanks to increased advertising revenue across its platforms, including YouTube.
Other top-tier tech stocks also did well. Nvidia, which makes chips for both video game devices and crypto mining rigs, gathered up 125% returns as supply chain problems boosted demand (and prices) for its products; its market cap is now above $750 billion.
Further down the stock list lies GameStop (GME), the video game retailer worth $11.7…