Bitcoin And Tesla: Which Has The Best Return in 2020?
we analyze Bitcoin and Tesla's price model in 2020
We select Tesla and Bitcoin to compare the ROI of the stock market and the crypto market.
The reasons why we just select Bitcoin to observe are as depicted below:
Bitcoin dominance is over 60%; SEC has charged a few mainstream cryptos like Ripple XRP while bitcoin has no policy risks; There are scams and fraud in the whole crypto market. By comparing Bitcoin and Tesla, we can conclude:
(1) Now that Bitcoin's price is around $28,000 with a market cap of around $520 billion while the market cap of Tesla shares closed at $660 on a lasting trading day and the market cap is $627.29 billion before Christmas.
(2) Tesla stock reached $70.10 of this year's low on March 20 while Bitcoin reached $3,800 of one-year low on March 13.
(3) Federal Reserve announced unlimited QE and rescue efforts; both Bitcoin and Tesla started a bull run. Bitcoin reached around $12,470 of a one-year high on Aug 17, while Tesla stock reached a new high at $502.49 on Sept 1. Both Nasdaq and S&P 500 reached a new high on Sept 2. and the Dow Jones on Sept 3. There was a 616.8% gain for Tesla and a 228.2% gain for Bitcoin. Ethereum (ETH) had a 470% gain, performing better than Bitcoin, but Tesla outperformed both Bitcoin and Ethereum.
(4) Since Sept 3 we saw the corrections of 3 Major US Indexes as well as the crypto market. On Sept 4, Bitcoin reached as low as $9,824 and Tesla reached 329.88 on Sept 8.
(5) Then the US presidential election was one of the significant factors that influenced the financial market. Since Biden won the election, the Biden era is coming and will be different in terms of both monetary and legal policies. Another major driving factor is that institutional investors are investing in Bitcoin and emerging crypto funds like Grayscale is getting crazy about buying Bitcoin.
(6) After the correction, both Bitcoin and Tesla started the second bull run. Since March, there is around 637% gain for Bitcoin and 891.44% for Tesla.
(7) On 31 Dec 2019, Tesla stock closed at $83.666 while Bitcoin was around $7200. There is a 730% gain this year for Tesla while a 388.89% gain has been experienced by Bitcoin this year.
(8) Currently, the gold market cap is around $9 trillion. If Bitcoin has the same market cap as gold, the price should be $480,000 per coin.
(9) The global electric vehicle market is projected to reach $802.81 billion by 2027. Even Tesla led the market, it has been facing fierce competition from others. But Bitcoin is unique in comparison to gold. Although there are Bitcoin Cash, Bitcoin SV, Litecoin, and other emerging currencies, these cryptos can hardly threaten Bitcoin's dominance.
(10) We can expect much better ROI in Bitcoin than that of Tesla in the long run. But as the Bitcoin price rises too fast these days, it may be risky when it challenges $30,000.
Image source: Shutterstock
