Bitcoin 10-year return reaches 12,581 percent, outpacing S&P 500

A $1,000 investment in Bitcoin made on Sept. 3, 2016, would be worth approximately $126,810 today, according to data from YCharts. This growth represents a total return of 12,581 percent, or an annualized rate of roughly 62 percent over the past decade.

The calculation excludes trading fees and taxes, and the exact total fluctuates daily with Bitcoin's price. Despite these variables, the asset has significantly outperformed traditional market benchmarks over the same period. The Nasdaq Composite recorded an annualized return of approximately 18 percent, while the S&P 500 returned about 14 percent. Gold lagged behind both equity indices with an annualized return of roughly 13 percent.

The path to this return was not linear. Bitcoin experienced severe drawdowns, including a 70 percent crash that prompted many investors to sell their holdings. At that time, market sentiment was heavily negative, with analysts advising investors to avoid the asset. The current landscape differs from that period, as major institutions on Wall Street now hold Bitcoin. Motley Fool Research tracks these holdings across governments, public companies, and exchange-traded funds.

However, such high returns are unlikely to repeat in the future. The author suggests that Bitcoin remains a suitable addition as a small portion of a well-balanced portfolio. In a separate analysis, the Motley Fool Stock Advisor analyst team identified 10 stocks for long-term growth but did not include Bitcoin in that specific list. The Motley Fool holds positions in and recommends Bitcoin.

Investment	Annualized Return (Sept. 2016-Sept. 2026)
Bitcoin	~ 62%
Nasdaq Composite	~ 18%
S&P 500	~ 14%
Gold	~ 13%

Source: YCharts.