Comparing Nvidia (NVDA) and Bitcoin (BTC) Investments in 2024

Thursday, 12 December 2024, 11:46

In 2024, BTC investments soared, but Nvidia (NVDA) outperformed with a 35% higher ROI. This article explores why NVDA is the better investment choice in the current year.
Finbold
Comparing Nvidia (NVDA) and Bitcoin (BTC) Investments in 2024

Introduction to 2024's Investment Landscape

As of 2024, Bitcoin (BTC) experienced remarkable growth, achieving triple-digit gains and reaching a milestone of $100,000 in early December. Despite BTC's impressive rise, recent findings indicate that Nvidia (NASDAQ: NVDA) offered greater returns. Research reveals that an investment in BTC at the year's start yielded 139.72% returns, whereas NVDA stock surged 188.47%, making its performance 1.35 times better than BTC's investments. As a result, NVDA provided a 35.7% greater return on investment.

Market Capitalization Comparison

The contrasting market capitalizations shed light on their respective performances. Bitcoin's market cap expanded from around $830 billion to nearly $2 trillion, totaling a rise of $1.17 trillion. In contrast, Nvidia stock’s valuation jumped from $1.22 trillion to $3.41 trillion, fetching an increase of a staggering $2.19 trillion, thus surpassing BTC's increase by 87%.

Nvidia's Long-Term Investment Advantages

Nvidia has also shown consistency in outperforming Bitcoin over more extended periods, largely due to the booming AI sector. For instance, investments from January 2023 in NVDA saw an impressive growth of 835%, while BTC enjoyed a 494% rise. Similarly, a purchase made at the beginning of 2020 resulted in a 2,255.9% gain for NVDA versus 1,273.2% for BTC.

Dividend Analysis

Although one might think dividends would sway investment preference, NVDA’s yield is minimal at 0.029%, yielding less than a dollar from a $1,000 investment made in 2024. This negligible impact does not significantly alter the overall total return.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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