Bitcoin has gained nearly 20,000% during the past 10 years, far more than the stock market.
However, the stock market is much safer and less volatile than Bitcoin.
Keep your positions small when investing in risky assets like Bitcoin.
Bitcoin (CRYPTO: BTC) had a shaky reputation in 2015. Although it outperformed the stock market and gold that year, skeptics still considered it a speculative asset and not a legitimate investment.
Some people still hold this view about Bitcoin, but it has become a popular asset among both retail and institutional investors, and Bitcoin exchange-traded funds (ETFs) have taken in over $50 billion. Let's see how much a small position in Bitcoin from 2015 would have grown during the past decade.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
If you had invested $100 in Bitcoin 10 years ago, you would have about $20,000 today, as the leading cryptocurrency has grown by nearly 20,000% (as of Dec. 22). The S&P 500, on the other hand, delivered a total return of about 300% during the same period.
It's important not to take the wrong lessons from this. The U.S. stock market has been around for centuries and has historically been one of the most effective ways to build wealth. It has had an average return of 10% per year during the past 50 years.
Bitcoin is a highly volatile digital asset that has been around since 2009. Investing in stocks was a much safer option than investing in Bitcoin in 2015, and that remains true today.
There's nothing wrong with investing in riskier assets like Bitcoin with a small amount of money -- no more than 5% of your portfolio. You won't be taking on too much risk, and you can still achieve impressive returns, with Bitcoin being a prime example of this.
Before you buy stock in Bitcoin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $502,783!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,126,057!*
Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of December 24, 2025.
Lyle Daly has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.