Bitcoin outperforms some of the top assets in the country for the year to date.
Bitcoin Halving Month 1
We can even see that bitcoin has outperformed the S&P 500 and even gold for the year. So far in June bitcoin has only yielded a 5.6% return compared to the S&P 500 4.6% return within the last 3 months. I’m still a firm believer that gold is the best hedge to the dollar. Though many recent articles may suggest otherwise — bitcoin would be the best hedge. I’m still testing that theory myself.
Last week, My portfolio yield a 13% return after the release of increased Defi investors in the crypto market.
We are even seeing that centralized banks are investing in cryptocurrencies due to the high volume of interest from their clients. We have even found that some of the world’s superpowers are looking to implement the blockchain technology into their countries economy. These countries include Switzerland, China, the United Arab Emirates, and many more. This has led me to believe that many centralized banks do hold minority stakes in various crypto’s.
What is Decentralized Finance (DeFi)?
Decentralized Finance (DeFi) is the movement that leverages decentralized networks to transform old financial products into trustless and transparent protocols that run without intermediaries.
What does this mean?
Well, Let say you went to your local cafe to purchase a coffee. This is how the transaction usually goes:
You -> Bank -> Merchant
In most centralized banking systems, the bank serves as the middle man between the buyer and seller. Which is not always secure.
In decentralized systems, your information is securely stored on an encryption ledger. Now if you are at the coffee shop and would like to make a purchase on the DeFi system it would usually go:
You -> Merchant
This a safe and seamless transaction! You will then receive a receipt through your phone or email. All transactions are saved to your encrypted ledger if you need to access it.
Often time, I find myself having conversations with people who are in positions I aspire to hold one day. Most of these individuals are leaders in their respective fields. The Reoccurring theme I noted between all of these individuals was that they all were motivated to solve problems. With that said, what problem do you want to solve?
Side note: Thank you all for the support, I do appreciate those who have reached out! Feel free to reach out via Twitter @JMTrotman
Bitcoin Vs. S&P 500: Who Performed Better for the Year? was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.