Bitcoin Vs Altcoins: Which Strategy Has Yielded The Most Since 2015?

Let’s dive into the crypto universe, where every investment decision can be a masterstroke or a monumental misstep. Since 2015, the crypto landscape has evolved at breakneck speed, creating fortunes and swallowing capital. So, should you bet on the titan Bitcoin or try your luck with promising altcoins? K33 Research has tackled this thorny issue, and their findings might just change your perspective.

Two investment strategies, one winner

In 2023, K33 Research conducted a bold experiment to settle this debate. They implemented two distinct strategies over an eight-year period, from January 2015 to June 2023.

The first strategy was to invest $1 in every cryptocurrency entering the top 100 by market capitalization.

This meant buying the top 100 in January 2015, then adding each newcomer to this elite ranking. An approach that maximized diversification and aimed at discovering the next gem.

The second strategy was more conservative but no less interesting. Whenever the first strategy invested $1 in an altcoin, this one invested $1 in Bitcoin. No dispersion, but unwavering confidence in the first and most famous cryptocurrency.

At the end of the experiment, the total invested was $1,009 for each strategy. The results were unambiguous.

The altcoin portfolio had a value of $6,651, multiplying the initial capital by 6.5. Impressive, you think? The Bitcoin portfolio, however, stood at $49,934, achieving a spectacular x50. The Bitcoin strategy turned out to be eight times more profitable than the altcoin-focused one. A difference that is thought-provoking.

Beyond the numbers: what this comparison reveals about the crypto market

But let’s not stop at the raw numbers. This study highlights subtler aspects of the crypto market. While Bitcoin has shown its robustness over the long term, altcoins have experienced notable phases of outperformance.

In 2017, for example, the altcoin strategy took a significant lead, driven by the meteoric rise of Ethereum and XRP (Ripple).

These moments of euphoria showed that altcoins could, occasionally, surpass the undisputed master.

However, volatility is the watchword in the realm of altcoins. Spectacular gains can be followed by steep declines.

The altcoin portfolio thus experienced significant fluctuations, sometimes nearing Bitcoin’s performance, especially during the Dogecoin and Shiba Inu craze in 2021. But these episodes remain the exception rather than the rule.

Another lesson from this study lies in the difficulty of choosing the right altcoins. Out of the more than 1,000 cryptocurrencies analyzed, fewer than 100 have offered positive returns to date. About 200 have posted losses, and nearly 700 are now inactive or worthless. An ocean of uncertainties where it is easy to get lost.

Which strategy to adopt?

So, what should the savvy investor conclude? Bitcoin stands out as a safe bet, a beacon in the crypto storm. Its ability to deliver consistent returns over the long term makes it a preferred choice for those seeking stability in an otherwise chaotic environment.

Altcoins, on the other hand, represent the playground of the bold. For those willing to undertake in-depth analysis and take calculated risks, they offer the possibility of extraordinary gains. But selection is crucial. Betting on the wrong horse can lead to total losses.

Perhaps wisdom lies in a balance between these two approaches. Diversifying one’s portfolio by combining the solidity of Bitcoin with a rigorous selection of promising altcoins could be the key. After all, innovation and disruption often come from outsiders. Meanwhile, Bitcoin miners liquidate 30,000 BTC in three days.