Per a report from the Cambridge Center for Alternative Finance (CCAF), fossil fuels have been the primary energy source for BTC mining since the start of the year. The CCAF recently updated its Cambridge Bitcoin Electricity Consumption Index (CBECI). Its study claims that 62% of all the energy the leading token has consumed so far consists of coal-based energy. BTC’s Energy-Intensive Mining Bitcoin employs the proof-of-work consensus mechanism to create new tokens and validate transactions on the blockchain. The PoW…
Recently collected data shows Moderna (MRNA), a pharmaceuticals firm, outperformed bitcoin by 243.87%. The data came from a year-to-date basis based on Finbold’s Bitcoin ROI tool. It also showed the role of the firm in the wake of the COVID-19 pandemic.
The rising popularity of Bitcoin has put it in a position of competition with traditional stocks. However, despite the surging value of this cryptocurrency in 2021, select stocks from the conventional sector have outperformed the asset.
The Coronavirus pandemic increased activities in the technological sector. Companies like Nvidia (NVDA), which is a semiconductor manufacturer, outperformed Bitcoin by 57.84%. Conversely, Conversely, Bitcoin underperformed the stock by -9.18%. Google (GOOGL) similarly outperformed this digital coin by 57.38%.
Bitcoin Faces Rivalry from Stocks
Some stocks in the financial sectors also outperformed Bitcoin. Wells Fargo (WFC) outperformed the cryptocurrency by 54.61%. Goldman Sachs (GS) also had higher returns compared to the digital asset by 46.98%. Microstrategy (MSTR) also had higher returns by 34.87% compared to Bitcoin.
The research report said, ”the stocks outperforming Bitcoin also highlights the recovery mode of the traditional markets. In 2020, the stock markets experienced a turbulent moment at the onset of the coronavirus pandemic. However, the stock market has since recovered, with specific indices hitting record levels.”
Nonetheless, CryptoParrot’s previous report showed significant growth in Bitcoin. The five-year ROI of the digital currency outperformed five leading banks by 4,214%. The digital asset had higher returns than Wells Fargo, by 7,151.86%. Citigroup (C) ranked second where Bitcoin had a higher return by 4,951.47%, then Goldman Sachs (GS) was third at 3,101.94%.
Influences Behind Stock ROI and Bitcoin
Although Bitcoin has experienced massive growth over its 13 years, it has faced competition this year. Various factors like high volatility have led to this. Stocks are the core competitors of this cryptocurrency. As a result, they attract investors from different backgrounds.
The massive gains in the stock sector also indicate the environment that these two classes of assets operate. There are no clear regulations in the crypto world. On the other hand, The stock sector operates under solid regulations, giving the investors confidence.
Bitcoin also plunged due to the crackdown initiated by the Chinese authorities. China has banned activities around cryptocurrency, including mining. As this crackdown intensifies, the digital asset has struggled to hit its all-time high (ATH).
Moderna stocks surged because the company had a role in producing vaccines against COVID-19. These vaccines have led to the lifting of multinational lockdowns.