Investing across asset classes can produce vastly different outcomes, depending on market conditions, economic trends and the timing of entry. While some investments offer the potential for higher returns, others provide relative stability and diversification during uncertain times.
Let's see how stocks, gold and cryptocurrencies have performed over the past five years.
Bitcoin emerged as the best-performing asset among the four investment options considered, delivering a 183% gain between October 2021 and October 2026. Gold followed with a 131% return, while India's Nifty 50 index delivered a comparatively modest return of 26% over the same period.
Bitcoin rose from approximately $29,000 in October 2021 to around $82,600 in October 2026, delivering a five-year return of 183% and an annualised return of approximately 23.1%.
The journey was far from smooth. Bitcoin suffered a sharp correction during the 2022 crypto winter amid tightening monetary conditions and the collapse of several crypto businesses. The subsequent recovery was supported by growing institutional participation, the introduction of spot Bitcoin exchange-traded funds in the US and the 2024 halving event.