On Tuesday (June 9), crypto analyst Willy Woo made a humorous attempt at explaining why Bitcoin has been a much better investment than gold over the past 10.7 years. 

Before we look at what Woo said yesterday, it is worth seeing what he said about Bitcoin, gold, and U.S. stocks a week ago.

On June 3, Woo pointed out that Bitcoin had performed better than both gold and stock — i.e. had a better risk-adjust return (as measured by the Sharpe ratio) — since 2014, including during the “COVID19 black swan crash”:

He also noted that the huge increase in gold’s Sharpe ratio since mid-2018 should have been an early signal to investors that “a reset in the long term debt cycle” was coming:

Then, yesterday, perhaps annoyed by Peter Schiff’s non-stop mocking of Bitcoin (or as Woo called it, “tireless promotion of Bitcoin to his audience of gold bugs”), he published a live chart that tracks the performance of gold vs Bitcoin in the case of a $1 investment made on 6 October 2009 (the day when “Bitcoin first had a market price).

Woo then used a snapshot of this chart in a tweet to explain that if you had invested $1 in Bitcoin back on that date, your investment today would be worth $12.8 million, meaning that you would have enough money now to buy a nice yacht, whereas if you had invested the same $1 amount in gold, you would now have $1.66, which is how much he says it costs to buy ba Snickers chocolate bar in the U.S.:

When it comes to the Snickers chocolate bar, Woo seems to be in the right ball park since you can currently buy one of these at Walmart for $1.48:

Snickers Chocolate.png

As for yachts, Edmiston is currently selling this sweet 2018 Sunseeker yacht for around $12.3 million:

2018 Sunseeker yacht.png

10 hours later, Schiff offered this not-so-quick comeback:

Obviously, all the institutional investors who are buying Bitcoin at a record pace from Grayscale Investments do not agree with Schiff’s assessment of Bitcoin:


Featured Image by “oreundici” via Pixabay.com