Crypto Stocks Couldn’t Outdo Bitcoin in 2021 Though Returns Were Promising

While everybody was busy buying and selling digital currencies in 2021, crypto stocks were totally forgotten during this time. In fact, the investors did not realize that crypto stocks were offering such huge profits. Had they realized this, then they could have made considerable money which they might have used for buying expensive digital assets such as Bitcoin.

It was the rising value of Bitcoin in 2021, which diverted investors’ attention towards itself in the expiring year. Just because of Bitcoin, the investors hadn’t even looked at “crypto stocks” as a viable source of generating some serious funds.

Crypto market conditions are such that there will soon be extraordinary returns. The best Bitcoin investment opportunity is to spend money and acquire some digital currencies.

Market conditions were not that good as they were for Bitcoin. Even then it remained a far better player than some of the most popular and rewarding crypto stocks. Similarly, Ethereum too made sure that investors keep glued their eyes to it instead of looking at profitable crypto stocks.

If the buying of Bitcoins is compared with the performance of stocks firms in 2021, then it is evident that stocks weren’t so profitable. Instead, it made more sense for the investors to acquire more Bitcoins instead of going for equities.

An official of a firm called “Three Arrows Capital”, commented that it is literally impossible for crypto stocks to outpace Bitcoin. Within the economy of digital currency and assets, Ethereum and Bitcoins were the ultimate champions, at least for 2021. Not even stocks of companies such as Coinbase or Microstrategy weren’t such convincing that they can divert the attention of Bitcoin and Ethereum consumers.

Some of the experts were of the view that usually the markets are straightforward. However, the market of digital currencies and assets is even more straightforward than traditional markets because they are non-regulated.

Yet, the stocks couldn’t stand a chance against the epic surge of Bitcoin and Ethereum. At the end of 2020, Bitcoin value was over US$ 20,000 and at the end of 2021, the value is over US$ 50,900. On the other hand, at the end of 2020, Ethereum’s value was below US$ 1,800. However, as of now, Ethereum value too has surged at a price exceeding US$ 4,100.

This year was also groundbreaking for the prominent organs of the crypto industry such as Decentralized Finance (defi). The market of Non-Fungible Tokens, which too is an organ of crypto, was able to take the competition directly to defi. The situation for crypto stocks is likely to remain as such in the upcoming year. However, it is expected that Bitcoin and Ethereum will be having a few more competing digital currencies such as Solana.

By Mike McIntosh
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