For decades, gold and the S&P 500 have been the cornerstones of long-term investing. Gold, often seen as a reliable store of value, has weathered centuries of monetary instability. The S&P 500, a benchmark for U.S. equities, has historically offered consistent returns and broad exposure to some of the world’s most influential companies.

Here we can see how investors have always flocked toward Gold during a crisis or uncertainty within markets. Data via Bloomberg and BofA Global Research.

Bitcoin, by contrast, is a newcomer. Launched in 2009, during the depths of the 2008 financial crisis, it was initially dismissed by most institutions as a fringe asset. Yet in that short time span, Bitcoin has not only endured — it has dramatically outperformed both gold and the S&P 500.

A Performance Comparison: Bitcoin, Gold, and the S&P 500

Since its inception, Bitcoin has generated returns that are orders of magnitude above traditional assets. Even accounting for its volatility, Bitcoin has delivered a compound annual growth rate (CAGR) of over 100% — far surpassing the ~10% annual return of the S&P 500 and the ~1–2% real return from gold.

This image is from CaseBitcoin

These numbers are not speculative. They’re rooted in publicly available market data across over a decade of trading. While short-term volatility has been part of Bitcoin’s profile, the long-term trajectory has been one of staggering growth.

Accessibility: How Bitcoin Has Become Easier to Own

When Bitcoin originally launched, accessibility was a major hurdle. There were no exchanges, no wallets with user-friendly interfaces, and no regulatory clarity. Today, owning Bitcoin is arguably easier than ever — and in many ways more accessible than traditional assets like gold or even the S&P 500 for global investors.

• As of 2025, it’s estimated that over 400 million people worldwide have some form of exposure to cryptocurrency — with Bitcoin being the most common.
• In countries with restricted financial access or inflationary crises (e.g. Argentina, Nigeria, Turkey), Bitcoin is increasingly used as a store of value or payment rail.
• Mobile-first wallets (like Strike, Muun, BlueWallet) have made access seamless in developing economies as well.

Sending payments overseas has never been easier— mobile wallets have become especially popular among those who send remittance payments to family members. The image above shows Strike, an app used for crypto payments.

Rethinking Risk

It’s common to frame Bitcoin as a ‘‘high-risk’’ asset. But in a world of currency debasement, political instability, and evolving market structures, one could argue the opposite:

It’s becoming riskier not to have any Bitcoin exposure at all.

Even a small allocation — 1–2% — can serve as a portfolio diversifier, an asymmetric upside play, or a hedge against traditional market risk. Institutions are beginning to see it, and retail investors now have more tools than ever to follow suit.

In 2024, Blackrock published a report stating ‘‘a 2% Bitcoin Allocation is a ‘reasonable range’.’’ - Reported by Bloomberg

In a recent report by Bitwise for Q1 of 2025, we can see that even a small allocation in ones portfolio can make a significant difference.

Conclusion

Bitcoin has achieved more in 14 years than most financial assets have in a lifetime. While gold and the S&P 500 remain important anchors in the global economy, Bitcoin has certainly earned its place in the conversation.

Its historical performance, increasing accessibility, and unique qualities make it a compelling consideration for any forward-thinking investor.

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